Carlos is the manager of a software development team. Recently, he discovered that one of his team members, Jamie, has been using company resources to work on a personal project during office hours. This project could potentially compete with one of their current company initiatives. Carlos must decide how to address this situation, knowing that it could affect team morale and company resources.

What defines the situation Carlos is facing, and how should he evaluate his options?

legal issues, focusing solely on whether Jamie's actions are against company policy or law.

Operational issues, deciding on the logistical aspects of reallocating company resources away from Jamie.

Ethical issues, as Carlos must choose actions that need to be evaluated as morally right or wrong, such as addressing the misuse of company resources and potential conflict of interest.

Financial issues, where Carlos should calculate the potential loss of profits from Jamie's actions.