
Concept explainers
To determine:
Whether the wholesaler guilty of an ethical lapse?
Context: A home furniture product company uses a linseed oil-based finish, purchased from a local wholesaler to preserve the look and feel of wood. The workers apply the finish with rags and they are thrown away after each project. After a news report about spontaneous combustion of waste rags occurring in other furniture shops, the furniture manufacturer contacted the wholesaler to ask for verification of the product safety. The wholesaler knows that the manufacturer has been considering a nonflammable, water-based alternative from another source but tries to assure with the following message:
‘Seal the rags in an approved container and dispose of it according to local regulations. As you probably already know, county regulations require all commercial users of oil-based materials to dispose of leftover finishes at the county’s hazardous waste facility’.
As the manufacturer is still not satisfied with the above explanation, an executive visit the website of the oil’s manufacturer and finds the following cautionary statement about the product:
‘Finishes that contain linseed oil or tung oil require specific safety precautions to minimize the risk of fire. Oil-soaked rags and other materials such as steel wool must be sealed in water-filled metal containers and then disposed of in accordance with local waste management regulations. Failure to do so can lead to spontaneous combustion that results from the heat-producing chemical reaction that takes place as the finish dries. In particular, DO NOT leave wet, oil-soaked rags in a pile or discard them with other waste’.
Introduction:
Presenting accurate information and avoiding ethical problems in the message is really important in order to ensure the quality information presented. Messages are unethical if the important information is missing. The sender should ensure sufficient information is provided.

Answer to Problem 1CA
Solution:
To be ethical, a sender should provide key information as well as sufficient information to ensure the message is not misleading the receiver.
Explanation of Solution
Messages are unethical if the sender does not provide key information which is important to the receiver. In the above context, the wholesaler is guilty as he has not provided sufficient information when the furniture manufacturer asks the safety of the oil based product. The brief message provided by the wholesaler is misleading the manufacturer due to insufficient information provided. For example, the wholesaler has not mentioned that failure to dispose of the used rags properly can lead to spontaneous combustion that results from the heat-producing chemical reaction that takes place as the finish dries.
Want to see more full solutions like this?
Chapter 4 Solutions
EBK EXCELLENCE IN BUSINESS COMMUNICATIO
- Hy expert provide answer with calculationarrow_forwardQuestion 3 i. Using the Center of Gravity method, determine the optimal location (X, Y) for the new distribution center. [7 marks] [TOTAL 25 MARKS] Time (sec.) Power steering assembly firm wants to set up an assembly line which must have an output of 60 units per hour. The work elements, task times and their precedence relationships are shown in Table 2: Table 1 Work Element Immediate Predecessor(s) A 30 NONE B 26 A C 50 A D 44 B E 10 с F 20 с G 15 D.E H 30 E,G,F Required: a. Draw the precedence diagram showing the task precedence and their times b. Determine the cycle time associated with the rate of output required. [3 marks] c. What is the theoretical number of work stations required to satisfy this output rate? [3 marks] [4 marks] d. Allocate the tasks to work stations taking into consideration the precedence requirements and using the LOT rule to break ties between feasible tasks. e. Calculate the total idle time [8 marks] [3 marks] f. What is the efficiency of the line and the…arrow_forward1.1 Discuss any FIVE (5) leadership failures of ‘The company founder and former CEO, Elizabeth Holmes’. Identify FIVE (5) elements of leadership and evaluate the outcome of the organisation if each element was used correctly by the former CEO. Your answers should be supported by academic sources where applicable. Make reference to the case study.arrow_forward
- During September, the assembly department completed 10,500 units of a product that had a standard materials cost of 3.0 square feet per unit at $2.40 per square foot. The actual materials purchased consisted of 22,000 square feet at $2.60 per square foot, for a total cost of $57,200. The actual material used during this period was 25,500 square feet. Compute the materials price variance and materials usage variance.arrow_forwardBluesy Electronics recorded the following financial data: Net Sales $720,500 Average Inventory at Cost = $80,200 Gross Margin Percentage = 42% Calculate the GMROI.arrow_forwardNeed help this question solutionarrow_forward
- XYZ Company has a gross profit margin of 0.30, an operating profit margin of 18%, a total asset turnover ratio of 2.0x, and cost of goods sold of $700,000. The company's tax rate is 35%, and it has no debt. Calculate XYZ Company's Return on Assets (ROA).arrow_forwardMON Pools builds custom swimming pools. MON budgets that they will build 16 pools during the month of June at a price of $22,750 per pool. The actual pools built by MON during June were 13 pools at a price of $23,420 per pool. What is the Flexible Budget Variance for June?arrow_forwardAnderson Corp. pays its employees every Friday for work performed through that Friday. Anderson employees work Monday through Friday and do not work on weekends. The gross payroll for Anderson is $12,500 each week. Anderson will pay its employees $12,500 on Friday, May 8th. This payroll is for wages earned Monday, May 4th through Friday, May 8th. How much of the $12,500 paid on May 8th should be expensed in May?arrow_forward
- Please solve this problem general accounting question don't use ai solutionarrow_forwardWhat is the book value of its liability? Accountingarrow_forwardAs indicated in the attached image, U.S. earnings for high- and low-skill workers as measured by educational attainment began diverging in the 1980s. The remaining questions in this problem set use the model for the labor market developed in class to walk through potential explanations for this trend. 1. Assume that there are just two types of workers, low- and high-skill. As a result, there are two labor markets: supply and demand for low-skill workers and supply and demand for high-skill workers. Using two carefully drawn labor-market figures, show that an increase in the demand for high skill workers can explain an increase in the relative wage of high-skill workers. 2. Using the same assumptions as in the previous question, use two carefully drawn labor-market figures to show that an increase in the supply of low-skill workers can explain an increase in the relative wage of high-skill workers.arrow_forward
- BUSN 11 Introduction to Business Student EditionBusinessISBN:9781337407137Author:KellyPublisher:Cengage LearningEssentials of Business Communication (MindTap Cou...BusinessISBN:9781337386494Author:Mary Ellen Guffey, Dana LoewyPublisher:Cengage LearningAccounting Information Systems (14th Edition)BusinessISBN:9780134474021Author:Marshall B. Romney, Paul J. SteinbartPublisher:PEARSON
- International Business: Competing in the Global M...BusinessISBN:9781259929441Author:Charles W. L. Hill Dr, G. Tomas M. HultPublisher:McGraw-Hill Education





