EBK ACCOUNTING PRINCIPLES
EBK ACCOUNTING PRINCIPLES
13th Edition
ISBN: 9781119411017
Author: Weygandt
Publisher: WILEY
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Chapter 25, Problem 5EYCT
To determine

Ethical Issue: A corporation has participated in a highly competitive industry. The corporation has decided decentralized form of organization in order to achieve profit. The basis for measuring manager’s performance in each decentralized investment centre will be profit contribution, market penetration and return on investment. The company failed to achieve its objectives which resulted in demotion or dismissal of investment center manager. A survey conveyed that managers feel the pressure to compromise their personal ethical standard to achieve the objectives of the company. The officer of the company announced that company must do something to overcome the situation.

To determine: (a) The effected parties in the given situation (b) The conflicts for the above situation (c) the ways by which company can reduce the pressure on managers.

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EBK ACCOUNTING PRINCIPLES

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