TROY IS THE CEO AND SOLE SHAREHOLDER OF BQT. BQT IS A VERY PROFITABLE C CORPORATION. UNTIL THIS YEAR, TROY'S SALARY WAS IN LINE WITH THE SALARIES OF OTHER COMPARABLE CEOS. HOWEVER, EARLY THIS YEAR IT CAME TO TROY'S ATTENTION THAT ANOTHER CEO FOR A SIMILARLY SIZED FIRM IN THE SAME INDUSTRY WAS RECEIVING A SALARY ALMOST TWO TIMES WHAT TROY WAS RECEIVING. WANTING TO MITIGATE THE DOUBLE TAX ON HIS CORPORATION'S INCOME, TROY DECIDE TO GIVE HIMSELF A 75% RAISE. DO YOU THINK TROY'S DECISION IS ETHICAL? WHY OR WHY NOT? READ THE ABOVE ETHICS QUESTION AND PROVIDE AN ANSWER AT LEAST 250 WORDS.
TROY IS THE CEO AND SOLE SHAREHOLDER OF BQT. BQT IS A VERY PROFITABLE C CORPORATION. UNTIL THIS YEAR, TROY'S SALARY WAS IN LINE WITH THE SALARIES OF OTHER COMPARABLE CEOS. HOWEVER, EARLY THIS YEAR IT CAME TO TROY'S ATTENTION THAT ANOTHER CEO FOR A SIMILARLY SIZED FIRM IN THE SAME INDUSTRY WAS RECEIVING A SALARY ALMOST TWO TIMES WHAT TROY WAS RECEIVING. WANTING TO MITIGATE THE DOUBLE TAX ON HIS CORPORATION'S INCOME, TROY DECIDE TO GIVE HIMSELF A 75% RAISE. DO YOU THINK TROY'S DECISION IS ETHICAL? WHY OR WHY NOT? READ THE ABOVE ETHICS QUESTION AND PROVIDE AN ANSWER AT LEAST 250 WORDS.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Provide Answer with calculation and explanation
Transcribed Image Text:TROY IS THE CEO AND SOLE SHAREHOLDER OF BQT.
BQT IS A VERY PROFITABLE C CORPORATION. UNTIL
THIS YEAR, TROY'S SALARY WAS IN LINE WITH THE
SALARIES OF OTHER COMPARABLE CEOS. HOWEVER,
EARLY THIS YEAR IT CAME TO TROY'S ATTENTION
THAT ANOTHER CEO FOR A SIMILARLY SIZED FIRM IN
THE SAME INDUSTRY WAS RECEIVING A SALARY
ALMOST TWO TIMES WHAT TROY WAS RECEIVING.
WANTING TO MITIGATE THE DOUBLE TAX ON HIS
CORPORATION'S INCOME, TROY DECIDE TO GIVE
HIMSELF A 75% RAISE. DO YOU THINK TROY'S DECISION
IS ETHICAL? WHY OR WHY NOT? READ THE ABOVE
ETHICS QUESTION AND PROVIDE AN ANSWER AT LEAST
250 WORDS.
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