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Unformatted text preview: The owner of Bleacher Mall, Dotson Company, would be losing income made from the 5% of yearly profits of over $500,000. It can eventually harm Rich Clothing Store if Dotson isnt receiving enough income to maintain the mall or renovate it if the mall needs it. Any shareholders of Rich Clothing Store are affected by the increase in debt debts and warranty costs. Itll reflect on the companys net profits and again make Rich Clothing Store look bad to their shareholders. If Hamilton goes along with Richs directive, it would hurt his ethical beliefs and other harm could come along if they continue to alter the debts and warranty costs. C) Matt Richs directive is no way ethical in any way. Although it might look good for the company, altering any thing in the books just to keep from paying a fee for any profits over $500,000. Its not fair to the Dotson Company and any stockholders involved with the company....
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This note was uploaded on 10/03/2010 for the course STAT 200 taught by Professor Hirschorn during the Fall '10 term at University of Maryland Eastern Shore.
- Fall '10