Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 2 (Accounting and Ethics) (15 marks) Marang Letsatsi is the MD and main shareholder of Marang 's Bar & Grill. To expand, the business

image text in transcribed

Question 2 (Accounting and Ethics) (15 marks) Marang Letsatsi is the MD and main shareholder of Marang 's Bar & Grill. To expand, the business is applying for a R250 000 bank loan. To get the loan, Marang is considering two options for beefing up the owners' equity of the business: Option1: Issue R100 000 of ordinary shares for cash. A friend has been wanting to invest in the company. This may be the right time to extend the offer Option 2: Transfer R100 000 of Marang 's personal land to the business. and issue ordinary shares to Marang. Then after obtaining the loan Marang can transfer the land back to himself and zero out the ordinary shares Required Use the ethical decision-making model to answer the following questions: 1. What is the ethical issue (1) 2. Who are the stakeholders? (4) what are the possible consequences to each? (2) 3. Analyze the alternatives from the following standpoints a) economic, b) legal, and c) ethical (6) 4. What would you do? How would you justify your decision? How would your decision make you feel afterwards? (2)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditors Guide To IT Auditing Software Demo

Authors: Richard E. Cascarino

2nd Edition

1118147618, 978-1118147610

More Books

Students also viewed these Accounting questions