Vate Cherry Required: Draft a memorandum to the CFO addressing her concerns. Hoadmys In the fourth quarter for the year ended 31 December 2017, Palace Limited decided to diversify its business by acquiring and it was proven that there has been substantial coal mines under were delighted to know about this as it was expected to bring huge revenue in the coming Today, you received a phone call from the due diligence team saying that the owner of the coal m did not obtain a proper operating licence from the government for this site. You reported this situation to Cherry through email and she replied as follows: a coal mine in the PRC. Due diligence and valuation were conducted in 201 ground in the site. The directors To From Date Subject Chris Wong, Accounting Manager Cherry Yu, CFO 1 February 2018 Coal Mine As far as I know, nearly 50% of the coal mines did not have a proper operating lic ence. This i considered as an industry norm! Can'tyou see the significance of this acquisition to our company? e need to bother about the operating licence? We don't need to report this in the announcement to our shareholders! Required: Discuss, from the ethical perspective, how you would react to this situation. END