(a)
Stakeholders: Stakeholders refer to those persons who own the stake in the business. This means that they have some share in the business. A stakeholder can be a person, an organization or a group. The stakeholder affects the actions of the business as they have got some rights in the business.
Ethical issues: This refers to the situation where it is difficult to choose the way to be followed. To avoid this situation, a set of rules is prepared in a company that should be followed. The ethical issues generally relate to the system of moral behavior and principles.
To explain: The stakeholders in the given situation
(b).
To explain: The ethical issues in this case
(c).
To explain: The improvement in the system to prevent the situation.
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Accounting Principles, Volume 1: Chapters 1 - 12
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