Business Essentials (11th Edition)
Business Essentials (11th Edition)
11th Edition
ISBN: 9780134129969
Author: Ronald J. Ebert, Ricky W. Griffin
Publisher: PEARSON
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Chapter 17, Problem 17.21EE
Summary Introduction

Given scenario:

YDC, a non-profit organization assists low-income families and provide education chances. It governance rest upon its board and community members who carry out YDC’s mission. Annual fund raising and financial returns for the past 12 years help in conduction tuition. The board goal is to raise the endowment to $4 million in five years.

The board invests its funds in both mutual funds and in tuition. It follows a conservative approach for which the board yields 5% returns in which 1% is invested in mutual funds and the rest is invested in tuition. As the boards want to increase its yield, it plans to invest its funds in a high return plan. To reach the goal of $4 million endowments, the company has to yield 17.5 percent on its investment in the next 5 years.

To determine: The ethical issue for the situation.

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