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
MYLAB EXCELLENCE IN BUSSI COMM ETEXT
- Exercise 3-12A (Algo) Conducting sensitivity analysis using a spreadsheet LO 3-5 Use the below table to answer the following questions. Selling Price$27.00 Variable 2,100 3,100 Fixed Cost Cost Sales Volume 4,100 Profitability 5,100 6,100 $25,700 8 $14,200 $33,200 $52,200 $71,200 $90,200 25,700 9 12,100 30,100 48,100 66,100 84,100 25,700 10 10,000 27,000 44,000 61,000 78,000 35,700 8 4,200 23,200 42,200 61,200 80,200 35,700 9 2,100 20,100 38,100 56,100 74,100 35,700 10 17,000 34,000 51,000 68,000 45,700 8 (5,800) 13,200 32,200 51,200 70,200 45,700 9 (7,900) 10,100 28,100 46,100 64,100 45,700 10 (10,000) 7,000 24,000 41,000 58,000 Required a. Determine the sales volume, fixed cost, and variable cost per unit at the break-even point. b. Determine the expected profit if Rundle projects the following data for Delatine: sales, 4,100 bottles; fixed cost, $25,700; and variable cost per unit, $10. c. Rundle is considering new circumstances that would change the conditions described in…arrow_forwardWhich of the following would be classified as a current liability ?arrow_forwardPlease original work Background information: Building a Knowledge Based Culture To operate efficiently in today’s technology driven environment, business leaders have realized the importance of building knowledge-based cultures and practices into the very fiber of their organizations. How do you design a knowledge-based culture using the training and development processes? What type of innovation is this in a successful high-tech firm? In a stable firm with little external change? Explain. Please cite in text references and add weblinkarrow_forward
- Provide correct answer general Accounting questionarrow_forwardConsider the case of Nutrorim that you read in Module 1 from a culture, structure, and strategy perspective. Answer the following questions. Be sure to support your reasoning with evidence from the case and course concepts. What impact has the democratic culture had on the company’s ability to make good, effective, decisions? How do you think this culture evolved?arrow_forwardThe matching Principal requires thatarrow_forward
- The following balance sheet for the Hubbard Corporation was prepared by the company: HUBBARD CORPORATION Balance Sheet At December 31, 2024 Assets Buildings Land Cash Accounts receivable (net) Inventory Machinery Patent (net) Investment in equity securities Total assets Accounts payable $ 763,000 289,000 73,000 146,000 266,000 293,000 113,000 86,000 Liabilities and Shareholders' Equity Accumulated depreciation Notes payable Appreciation of inventory Common stock (authorized and issued 113,000 shares of no par stock) $ 2,029,000 $ 228,000 268,000 526,000 93,000 452,000 Retained earnings 462,000 Total liabilities and shareholders' equity $ 2,029,000 Additional information: 1. The buildings, land, and machinery are all stated at cost except for a parcel of land that the company is holding for future sale. The land originally cost $63,000 but, due to a significant increase in market value, is listed at $146,000. The increase in the land account was credited to retained earnings. 2. The…arrow_forwardAn increase of 20 million bicycles demand as a result of a lower parrow_forwardReal property can be owned in several ways: a fee simple, a life estate, a leasehold estate, and an easement. What are the advantages and disadvantages (if any) for the form of real estate ownership known as a leasehold estate. Consider any risks and benefits on the ease of sale or transfer and the ability to stay in possession, to the exclusion of others.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