
Indicate the stakeholders in the given case, and explain the way in which they were affected by Person FH’s actions.

Explanation of Solution
Person FH, Person RH, Person MH, the travelers at D International Airport, airport employees, the unit of National Guard, local police, rescue team, media, taxpayers of State CO, and the public are the stakeholders.
Person FH was used to lie, to build the hoax that he was hiding in the helium balloon and had floated away. This hoax caused a mental pressure among the public, media, police, and the airport travelers. Person FH was also under pressure to build the hoax by his parents and play out the story to media. His parents Person RH and Person MH wanted to garner the attention of the public to create their own reality show on the television. The hype was created only to get the attention of the media.
The D International Airport remained closed to prevent the collision with the floated balloon. The travelers at the airport suffered delays as the flights were rescheduled and rerouted. The airport employees had to tolerate the frustration of travelers over the missed and delayed flights. The unit of National Guard, local police, and rescue team worked for hours to find the boy. The equipment used to track the balloon was an additional cost. The media spent hours along with the investigating team to provide the detailed report to the public.
The taxpayers of State CO were billed for the additional costs spent for searching, tracking, rescuing, and investigating. The public suffered mental tension for the lost boy and his fate, in the balloon.
Explain the moral reasoning stage of Person K’s model that was exhibited by Person RH’s actions.

Explanation of Solution
Person RH’s pleading of the guilty for influencing the authorities for a false hoax, was to protect his wife, but not out of a sense of guilt. So, Person RH was reasoning at the stage 2 of Person K’s model.
Explain whether justice was done in the punishment for the crime.

Explanation of Solution
Person RH was detained for 90 days imprisonment and a fine of $36,000. The television authorities did not give any financial benefit for his crazy work. Person RH pled guilty counting as a criminal charge for influencing the authorities for a false hoax, to protect his wife from being deported to her nation. Person RH did not think that his act would be counted as felony. The punishment he received was not that serious which could equal to the mental tension the authorities, the public, the rescue team, the local police and the airport travelers suffered.
Want to see more full solutions like this?
Chapter 2 Solutions
Ethical Obligations and Decision-Making in Accounting: Text and Cases (Book ONLY)
- Juan Leon Martinez posted Apr 7, 2025 11:25 AM Subscribe Hello everyone, Esteban is not performing in a professional manner in this scene. In fact, he is showing extreme unprofessional manners and unethical work ethic. Under no circumstance should he be using a company's tools or assets for his own benefit. You can also see he is trying not to get caught by any upper management due to him doing these actions after hours of work. As a manager, a great change I would do differently to make sure Esteban is not using the company's assets for their own benefit, would be coachings and sit down conversations. A sit down conversation can have the employee get an idea on how bad his actions are towards the company. This disciplinary of a coaching would be a written down statement from both manager and employee stating that he or she understands the actions they have done, which could lead to suspension or possibly termination. These unethical actions could lead to a great deal of financial loss…arrow_forwardhow much more money can the bank create? accounting questionarrow_forwardwhat is the correct optionarrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education





