1. Consider the following scenario between Dave, a printer, and Steve, an assistant in the local university's athletic department.

Steve: Dave, our department needs to have 10,000 posters printed for the basketball team for next year. Here's the mock-up, and we'll need them in a month. How much will you charge?

Dave: Well, given the costs I have for ink and paper, I can come in at around $5,000.

Steve: Great, here's what I want you to do. Print me up an invoice for $7,500. That's our budget. Then, when they pay you, you give me a check for $2,500. I'll make sure that you get the job.

Conceptual Connection: Is Steve's proposal ethical? Yes OR No?

2. What should Dave do?

The Bedron Company is a closely held investment service group that has been quite successful over the past 5 years, consistently providing most members of the top management group with 50% bonuses. In addition, both the chief financial officer and the chief executive officer have received 100% bonuses. Bedron expects this trend to continue.

Recently, Bedron's top management group, which holds 35% of the outstanding shares of common stock, has learned that a major corporation is interested in acquiring Bedron. The other corporation's initial offer is attractive and is several dollars per share higher than Bedron's current share price. One member of management told a group of employees under him about the potential offer. He suggested that they might want to purchase more Bedron stock at the current price in anticipation of the takeover offer.

3. Conceptual Connection: Do you think that the employees should take the action suggested by their boss? Yes OR No?

4. Suppose the action is prohibited by Bedron's code of ethics. Now suppose that it is not prohibited by Bedron's code of ethics. Is the action acceptable in that case? Yes OR No?

5. The chief accounting officer for a firm is the

a. Chief Executive Officer.

b. Chief Operating Officer.

c. Controller.

d. Chief Risk Officer.

e. Production Head.

1. Consider the following scenario between Dave, a printer, and Steve, an assistant in the local university's athletic department. Steve: Dave, our department needs to have 10,000 posters printed for the basketball team for next year. Here's the mock-up, and we'll need them in a month. How much will you charge? Dave: Well, given the costs I have for ink and paper, I can come in at around $5,000. Steve: Great, here's what I want you to do. Print me up an invoice for $7,500. That's our budget. Then, when they pay you, you give me a check for $2,500. I'll make sure that you get the job. Conceptual Connection: Is Steve's proposal ethical? Yes OR No? 2. What should Dave do? The Bedron Company is a closely held investment service group that has been quite successful over the past 5 years, consistently providing most members of the top management group with 50% bonuses. In addition, both the chief financial officer and the chief executive officer have received 100% bonuses. Bedron expects this trend to continue. Recently, Bedron's top management group, which holds 35% of the outstanding shares of common stock, has learned that a major corporation is interested in acquiring Bedron. The other corporation's initial offer is attractive and is several dollars per share higher than Bedron's current share price. One member of management told a group of employees under him about the potential offer. He suggested that they might want to purchase more Bedron stock at the current price in anticipation of the takeover offer. 3. Conceptual Connection: Do you think that the employees should take the action suggested by their boss? Yes OR No? 4. Suppose the action is prohibited by Bedron's code of ethics. Now suppose that it is not prohibited by Bedron's code of ethics. Is the action acceptable in that case? Yes OR No? 5. The chief accounting officer for a firm is the a. Chief Executive Officer. b. Chief Operating Officer. c. Controller. d. Chief Risk Officer. e. Production Head