Ethical Case Study: Case Summary: MB and 2 other partners operate S Partners, a global import-export business, where MB records the partnership transactions. MB travels to the firm in the car as it is the only means of transport and one day the car breaks down on the way to firm. The engine is damaged and the cost to repair comes around $2,000. MB falls short of the amount and takes $2,000 from the firm and records it as firm’s expense, thinking it to be appropriate, as the car is required for daily commute to work. To Explain: The action of MB as ethical or not.

Question

Marco Brolo is one of three partners who own and operate Silkroad Partners, a global import–export business. Marco is the partner in charge of recording partnership transactions in the accounts. On his way to work one day, Marco's car broke down. At the repair shop, Marco learned that his car's engine had significant damage, and it will cost over $2,000 to repair the damage. He does not have enough money in his bank account to cover the cost of the repair, and his credit cards are at their limit. This car is the only form of transportation that Marco has to get to and from work every day. He does not use his car for any business travel. After considering his options, Marco decides to take $2,000 from the partnership for the repair, and record it as an expense of the partnership. He believes that this is appropriate since he needs his car to get to work every day. Is Marco behaving ethically? Why? Who is affected by Marco's decision? What other alternatives might Marco…

Answer 1

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 1, Problem 1.1TIF

1)

To determine

Ethical Case Study:

Case Summary:

MB and 2 other partners operate S Partners, a global import-export business, where MB records the partnership transactions. MB travels to the firm in the car as it is the only means of transport and one day the car breaks down on the way to firm. The engine is damaged and the cost to repair comes around $2,000. MB falls short of the amount and takes $2,000 from the firm and records it as firm’s expense, thinking it to be appropriate, as the car is required for daily commute to work.

To Explain: The action of MB as ethical or not.

2)

To determine

To Identify: The People affected by the decision of MB.

3)

To determine

To Consider: The other alternatives available with MB.

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Marco Brolo is one of three partners who own and operate Silkroad Partners, a global import–export business. Marco is the partner in charge of recording partnership transactions in the accounts. On his way to work one day, Marco's car broke down. At the repair shop, Marco learned that his car's engine had significant damage, and it will cost over $2,000 to repair the damage. He does not have enough money in his bank account to cover the cost of the repair, and his credit cards are at their limit. This car is the only form of transportation that Marco has to get to and from work every day. He does not use his car for any business travel. After considering his options, Marco decides to take $2,000 from the partnership for the repair, and record it as an expense of the partnership. He believes that this is appropriate since he needs his car to get to work every day. Is Marco behaving ethically? Why? Who is affected by Marco's decision? What other alternatives might Marco…

Marco Brolo is one of three partners who own and operate Silkroad Partners, a global import– export business. Marco is the partner in charge of recording partnership transactions in the accounts. On his way to work one day, Marco’s car broke down. At the repair shop, Marco learned that his car’s engine had significant damage, and it will cost over $2,000 to repair the damage. He does not have enough money in his bank accountto cover the cost of the repair, and his credit cards are at their limit. This car is the only form of transportation that Marco has to get to and from work every day. He does not use his car for any business travel. After considering his options, Marco decides to take $2,000 from the partnership for the repair and record it as an expense of the partnership. He believes that this is appropriate since he needs his car to get to work every day.1. Is Marco behaving ethically? Why or why not?2. Who is affected by Marco’s decision?3. What other alternatives might Marco…

Martin Manera is one of three partners who own and operate TaftWorld, a global import and export business. Martin is the partner in charge of recording partnership transactions in the accounts. One day while driving to work, Martin’s car broke down. Upon inspection, the mechanic discovered the engine had to be replaced at a cost of $5,000. Martin does not have enough money in his bank account and his credit cards are at their limits. He has to have this car to come to work, and he only uses his car for this purpose. He decides to take $5,000 from the partnership for the repair and record it as an expense of the partnership. What are three ethical issues in this scenario?

Answer 2

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 1, Problem 1.1TIF

1)

To determine

Ethical Case Study:

Case Summary:

MB and 2 other partners operate S Partners, a global import-export business, where MB records the partnership transactions. MB travels to the firm in the car as it is the only means of transport and one day the car breaks down on the way to firm. The engine is damaged and the cost to repair comes around $2,000. MB falls short of the amount and takes $2,000 from the firm and records it as firm’s expense, thinking it to be appropriate, as the car is required for daily commute to work.

To Explain: The action of MB as ethical or not.

2)

To determine

To Identify: The People affected by the decision of MB.

3)

To determine

To Consider: The other alternatives available with MB.

Expert Solution & Answer

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Answer 3

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 1, Problem 1.1TIF

1)

To determine

Ethical Case Study:

Case Summary:

MB and 2 other partners operate S Partners, a global import-export business, where MB records the partnership transactions. MB travels to the firm in the car as it is the only means of transport and one day the car breaks down on the way to firm. The engine is damaged and the cost to repair comes around $2,000. MB falls short of the amount and takes $2,000 from the firm and records it as firm’s expense, thinking it to be appropriate, as the car is required for daily commute to work.

To Explain: The action of MB as ethical or not.

2)

To determine

To Identify: The People affected by the decision of MB.

3)

To determine

To Consider: The other alternatives available with MB.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Answer 4

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 1, Problem 1.1TIF

1)

To determine