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please help me to solve the problem of Question 1. Thanks! Using the AAA model. REDEMEER'S UNIVERSITY, MOWE. COLLEGE OF MANAGEMENT SCIENCES DEPARTMENT OF ECONOMICS

please help me to solve the problem of Question 1. Thanks! Using the AAA model.

image text in transcribed REDEMEER'S UNIVERSITY, MOWE. COLLEGE OF MANAGEMENT SCIENCES DEPARTMENT OF ECONOMICS AND BUSINESS ADMINISTRATION 2ND SEMESTER EXAMINATION, 2009/2010 ACADEMIC SESSION COURSE TITLE: BUSINESS COURSE CODE: TIME ALLOWED: ANSWER OUESTION ETHICS AND CORPORATE BUS 406 2Hrs. I AND ANY OTHER THREE GOVERNANCE OUESTIONS Question 1 Susan is the management accountant working in the plastic division of a large multinational conglomerate. In accordance with the organisation's decentralised operating model, Susan works for Harry. Harry is the divisional manager for plastics and has a background in engineering. Susan '5 responsibilities include the preparation of a monthly management pack that is provided to the divisional manager and forwarded to the organisation's national office together with the divisional manager's monthly review. The plastics market has reached a mature stage and the division's results have been stable for a number of years. In addition, the industry is under threat from increasing competition as a result oflower barriers to entry and changes in technology. Susan's latest monthly management pack reflects the continuation in the decline in the division's profit margins and no growth in sales. Harry is anxious about the plastics division's future. For a number of months, the division has failed to meet the organisation's benchmark rate of return. Harry has heard from a reliable source that the national office is seeking to divest the plastics division or, in the absence of a sale, abandon the division. The division employs 35 people. Harry has reviewed the monthly management pack and instructed Susan to change the accounting treatment of unearned income to bring forward the recognition of sales income, and to increase the useful life of depreciable assets. Susan has tried to explain to Harry that the national office determines the accounting policies for income recognition and asset depreciation. Harry replies that he is too busy into the accounting 'mumbo jumbo'; Susan is again instructed to make the changes or she may be fired. Question 2 Succinctly discuss the relevance choice. of corporate governance in any organisation of your Question 3 Considering the depth of your knowledge in business ethics and corporate governance, what can you adduce as the significance of ethics in business organisation? Question 4 How would you respond to someone who made the faHawing statement? "Organisa tional cultures are not important as far as managers are concerned" . 13V,marks. Question 5 Use appropriate ethical theory to justify the assertion that "those who live in glass house do not throw stone" Question 6 (a) Does code of ethics pay om 3V,marks. (b) Briefly discuss the contribution of Mary Guy to the development of ethical values. lOmarks

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