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Business Ethics and Manipulating Financial Results

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One of the most common problems in business ethics is the tendency for management to ask employees to join in manipulating numbers for desired financial results. Discuss this business ethics problem.

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One of the most common topics in business ethics takes place from a finance standpoint. In accounting practices and in companies of various sizes, there is a tendency for management to ask employees to join in manipulating numbers for desired financial results. As an accountant, this is experienced from a client standpoint. The client asks the accountant to increase sales or decrease expenses so that the client will qualify for bank loans or appeal to investors.

Large companies are often under pressure to meet certain financial goals. Due to bank loans, attracting investors, or debt covenants, the company must have financial ratios at certain levels or they risk losing money or ...

Solution Summary

This solution discusses the ethics involved in manipulating numbers for desired financial results. Two references are provided.

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