Business Its Legal Ethical & Global Environment
10th Edition
ISBN: 9781305224414
Author: JENNINGS
Publisher: Cengage
expand_more
expand_more
format_list_bulleted
Question
error_outline
This textbook solution is under construction.
Students have asked these similar questions
Read each case and specify which standard was violated
1.Aziza works for a multinational investment adviser based in the USA, she has US citizenship since 2020. She lives and works as a registered investment adviser in the tiny, but wealthy, island nation. The securities laws state that no investment adviser registered and working in that country can participate in initial public offerings (IPOs) for the adviser’s personal account. Aziza, believing that as an American citizen working for a U.S.-based company she should comply only with U.S. law, has ignored this Karrambian law. In addition, Aziza believes that, as a charter holder, as long as she adheres to the Code and Standards requirement that she disclose her participation in any IPO to her employer and clients when such ownership creates a conflict of interest, she is meeting the highest ethical requirements.
Supposed CCS was formed with Nicole Johnson, Sarah Walker, and Chanzz Inc., a legal corporation owned by Chance Armstrong, as shareholders. Chance Armstrong is a U.S. resident but a French citizen. His mother has recently been diagnosed with a terminal illness, and Chance has decided to move back to France to take care of his mother and her affairs. He anticipates that he will live in France for several years and that he will no longer be considered a U.S. resident.
Questions to consider include the following:
If you were Sarah or Nicole, how would you react to Chance’s decision to move?
Would you ignore the impact it may have on CCS’s S Corporation status?
Would you pressure Chance to sell his CC stock to you?
What are the consequences if Sarah and Nicole ignore the impact on CCS's S corporation status? Would this action violate tax law? Would this action violate ethical standards?
Based in Australian law
Joseph Shrestha, the holder of a Nepalese passport and relevant working visa, arrived in Australia from Nepal in January 2016. He started work as an administrator in a Sydney hospital. On 10 July 2018 he travelled back to Nepal for personal reasons and worked in odd jobs until 1 November 2018 when he returned to Sydney and resumed his position at the hospital. While in Nepal he continued to maintain the apartment which he had bought in Sydney and his Australian bank account. He was on "leave without pay" from his job at the hospital. During the 2018/19 income year Joseph was paid $25,000 for his work in Nepal and $35,000 for his work as an administrator in Australia. Nepalese tax of $3,000 was deducted from his salary. He was paid a bonus of $2,800 from Sydney hospital on 5 July 2018 for his work performed during April to June 2018. He also received $2,000 interest on the savings in his Australian bank account and a fully franked dividend of $700 from his share…
Knowledge Booster
Similar questions
- A visiting American executive discovers that a foreign subsidiary in Bangladesh has employed a 12-year-old girl in violation of the company's policy against child labour. He instructs the local manager to find a replacement for the child and send her back to school. The local manager informs the American executive that the child is an orphan with no other means of support; if she is denied employment, she will likely become a street child. EXPLAIN HOW set up a residential school CAN against child labour IN minimise the negative consequences AND maximise the benefits for all stakeholdersarrow_forwardThe following persons are your clients: Who is allowed to claim deduction? - Nicanor, an employee of ABC Corp. - ABC Corp, a foreign corporation doing business in the Philippines - XYZ Corp. a foreign corporation based in Europe - Inday Manoban, a Thai-Korean and member of the PinkBlack K-Pop Group based in Korea a. Nicanorb. ABC Corpc. XYZ Corpd. Indayarrow_forwardDurant Limited is a construction company based in Malawi and has presence in almost seven countries in sub-Saharan Africa . Because of the aggressive government construction programs in the region, the company has seen an increase in its orders and has reached a point where a significant amount of finance is needed to source future growth. The board recently decided to list the business on the Johannesburg Stock Exchange and is currently examining the full implications of this decision on its operations. The Board Chairperson has argued that a stock exchange listing may alter the way in which the business views their dividend policy. However, the CEO has insisted that the dividend policy is unimportant as the pattern of dividend has no effect on shareholder wealth. Key data on the dividend policy adopted is as follows: Financial year end Profit after tax (K'000) Ordinary dividends (K'000) Ordinary shares in issue (K'000) 2013 1,140 480 1,500 2012 990 550 2,200 2011 1,232 1,056…arrow_forward
- Albert Camus, Noah Avram Chomsky, Woodrow Wilson, Elton Mayo, Frederick Taylor and Meredith Spencer together with their management consultant Etsey Agbenorxevi recently returned to Ghana for a holiday. It was during this same period that the COVID-19 pandemic hit the world hard to the extent that nations closed their borders. Having remained in Ghana for the past 8 months, they have become very accustomed to the culture of Ghana and have decided to move their investments from the diaspora to Ghana through the vehicle of business organisation here in Ghana. Upon a visit to the University of Ghana last week Thursday, they met you at the athletic oval and begun to discuss their intentions with you a) As a Company Law student who is very ardent and meticulous in whatever you do, discuss with them the types of business organisations there are in Ghana and why they should go for a particular business organisation and not the other. b) Following your counsel in A above, they want to know all…arrow_forwardDue to his debt to Chur, Schwyz wrote a promissory note which is payable to the order of Chur. Chur's sister, Sion, misrepresenting herself as agent of Chur, obtained the note from Schwyz. Sion then negotiated the note to Lausanne after forging the signature of Chur. May Lausanne enforce the note against Schwyz? a. Yes, since Schwyz is the principal debtor. b. No, since it is Chur who can enforce it, the note being payable to the order of Chur. c. No, since the signature of Chur was forged. d. Yes, since Schwyz, as maker, is primarily liable on the note.arrow_forwardWhich of the following is most likely not a trade transaction for income tax purposes? A. In August 2020, Jackie imported fine diamond jewelleries from South Africa which she placed it in her diamond boutique in London for resale on higher profits. B. Aziza imported a consignment of tourist gifts made of genuine leather from overseas. She subsequently sold all the gifts through a few tourist agents on commission. C. Alexander sold his inherited properties during the tax year 2020/21. The properties were inherited from his wealthy father. A property agent helped him in doing that by advertising the properties in a local magazine in search of good prices. D. Speculating the fluctuation in the price of gold, James bought a large quantity of gold on 1 July 2020 and successfully resold on 15 September 2020.arrow_forward
- On Thursday, Justin flies from Baltimore (where his sole proprietorship office is located) to Cadiz (Spain). He conducts business on Friday and Tuesday; vacations on Saturday, Sunday, and Monday (a legal holiday in Spain); and returns to Baltimore on Thursday. Justin was scheduled to return home on Wednesday, but all flights were canceled due to bad weather. As a result, he spent Wednesday watching floor shows at a local casino. a. For tax purposes, what portion of Justins trip is regarded as being for business? b. Suppose Monday was not a legal holiday. Would this change your answer to part (a)? Explain. c. Under either part (a) or (b), how much of Justins airfare qualifies as a deductible business expense?arrow_forwardBefore boarding his flight to Zurich, Switzerland, Ian purchased CHF900 from his bank when the exchange rate was C$1 = CHF0.9753. However, Ian had to cancel the trip. Ian returned to the bank to convert the Swiss currency back into Canadian dollars. If the exchange rate changed to C$1 = CHF0.984, how many Canadian dollars would Ian have lost in these transactions? Assume the bank has a 1.00% commission on both the sale and the purchase of the funds. C Round to the nearest cent Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for surearrow_forwardJack is an accountant for an international accountancy firm based in Fiji. He has investments in Fiji comprising of his own home, a rental property, shares in local companies and cash deposits in high interest-bearing bank accounts. On 1 February 2020, Jack was transferred to the firm’s Brisbane office on a temporary three-month secondment. The purpose of the secondment was to establish networks with existing Australian clients that have indicated the possibility of investing in Fiji. During the secondment period, Jack remained an employee of the Fiji office, and his salary was paid into his Fiji bank account. While Peter’s intention was to return to Fiji at the conclusion of his secondment, he sought and was successfully offered a permanent position in Brisbane. In early June 2020, he became an employee of the Brisbane office. His relocation involved purchasing an apartment in the Brisbane suburb of Ascot, renting out his own home in Fiji and transferring a sum of cash to a high…arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Business Its Legal Ethical & Global EnvironmentAccountingISBN:9781305224414Author:JENNINGSPublisher:Cengage- Business/Professional Ethics Directors/Executives...AccountingISBN:9781337485913Author:BROOKSPublisher:Cengage
Business Its Legal Ethical & Global Environment
Accounting
ISBN:9781305224414
Author:JENNINGS
Publisher:Cengage
Business/Professional Ethics Directors/Executives...
Accounting
ISBN:9781337485913
Author:BROOKS
Publisher:Cengage