Answered step by step
Verified Expert Solution
Question
1 Approved Answer
2 (20 Marks) Thembi Thandi, owner of Thandi Cleaners, drive-through dry cleaners, would like to expand her business from its current location to a chain
2 (20 Marks) Thembi Thandi, owner of Thandi Cleaners, drive-through dry cleaners, would like to expand her business from its current location to a chain of cleaners. Revenues at the one location have been increasing at an average of 8% per quarter. Profits have been increasing accordingly. Thembi is conservative in spending and is a very hard worker. She has an appointment with a banker to apply for a loan to expand the business. To prepare for the appointment, she instructs you, as chief financial officer and payroll clerk to copy the quarterly income statements for the past two years but not include a balance sheet. Thembi already has a substantial loan from another bank. In fact, she has very little of her own money invested in the business. Required: 1) What is the ethical dilemma in this case? Who would be affected and how would they be affected if you follow Thembis instructions? (5) 2) What responsibility do you have in this situation? (5) 3) If the banker does not receive the balance sheet, will he have all of the relevant information needed for decision making? Why or why not? (4) 4) Will the information provided by Thembi be neutral? (2) 5) What should you do? Might someone be harmed by Thembis accounting decision? Explain. (4)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started