Ethics Activity 3

Is this really a business expense?

Kate Felman owns a computer consulting business. Each year she must report the amount of revenue and expenses involved in operating the firm. She must pay federal income tax on the amount by which revenues exceed expenses.

Instructions

Use the 3 step checklist to determine whether or not the following situations demonstrate ethical behavior.

Situation 1

Ms. Feldman often makes personal long-distance phone calls from her office. She charges these calls to the business account.

1. Is the action illegal?

2.Does the action violate company or professional standards?

3.Who is affected, and how, by the action?

Situation 2

Ms. Feldman hired her teenage daughter to work after school as an office assistant. Becky comes into the office every afternoon and earns $6.00 per hour. During this time, she does homework and Snapchats her friends. Ms. Feldman knows that the business does not really need an assistant, but this is a good way for Becky to earn spending money.

1. Is the action illegal?

2.Does the action violate company or professional standards?

3.Who is affected, and how, by the action?