Solution and Answer Guide: Mann/Roberts, Smith & Roberson’s Business Law, 19e, 9798214054377; Chapter 2: Business Ethics and the Social Responsibility of
Business
Solution and Answer Guide
MANN/ROBERTS, SMITH & ROBERSON’S BUSINESS LAW, 19E, 9798214054377; C HAPTER 2:
BUSINESS ETHICS AND THE SOCIAL RESPONSIBILITY OF BUSINESS
TABLE OF CONTENTS
Answers to Problems....................................................................................................1
ANSWERS TO PROBLEMS
1. You have an employee who has a chemical imbalance in the brain that causes him to be severely
emotionally unstable. The medication that is available to treat this schizophrenic condition is extremely
powerful and decreases the taker's life span by one to two years for every year that the user takes it. You
know that his doctors and family believe that it is in his best interest to take the medication. What course of
action should you follow?
Answer:
Arguments Against Social Responsibility. This question illustrates one scenario where
arguments against corporate social responsibility could come into play. If you take the “anti-social
responsibility” position that a corporation has—as its primary objective—a fundamental responsibility to
maximize profits, the employer could make the medication a requirement for the employee to remain in the
workforce. It could be argued that this decision may also decrease the possibility of injury or deterioration
in working conditions for other employees. The other side of the argument, however, is that this type of
decision is too personal for a corporation to make. The ultimate determination should reside with the
employee, and it should be his free decision to take or not take the medication. This puts the responsibility
back where it belongs, on the employee and his family.
2. You have a very shy employee who is from another country. After a time, you notice that the quality of her
performance is deteriorating. You find an appropriate time to speak with her and determine that she is
extremely distraught. She informs you that her family has arranged a marriage for her and that she refuses
to obey their contract. She further informs you that she is contemplating suicide. Two weeks later, with her
poor performance continuing, you determine that she is on the verge of a nervous breakdown; once again
she informs you that she is going to commit suicide. What should you do? Consider further that you can
petition a court to have her involuntarily committed to a mental hospital. You know, however, that her
family would consider such a commitment an extreme insult and that they might seek retribution. Does this
prospect alter your decision? Explain.
Answer:
Arguments For Social Responsibility. A good, responsible manager would be hard-pressed to
demand that the employee either improve her on-the-job performance or face dismissal. However, initiating
an involuntary committal to a mental hospital could constitute an improper invasion of rights with many
legal repercussions. An interim step of providing appropriate psychological social counseling (perhaps at
company expense) would seem to best fit into the concept of good corporate management. This would
benefit not only the individual, but the corporation may be able to keep a valued employee. The cost of
counseling is likely to be less expensive than hiring and training a new employee.
© 2027 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 1
accessible website, in whole or in part.
,Solution and Answer Guide: Mann/Roberts, Smith & Roberson’s Business Law, 19e, 9798214054377; Chapter 2: Business Ethics and the Social Responsibility of
Business
3. You receive a telephone call from a company that you never do business with requesting a reference on one
of your employees, Mary Sunshine. You believe that Mary is generally incompetent and would be delighted
to see her take another job. You give her a glowing reference. Is this right? Explain.
Answer:
Utilitarianism. Pawning off an incompetent employee would certainly help the profitability of an
employer. However, relatively accurate referrals are expected, and good corporate citizenship would
impose a moral responsibility to act properly. The employer would be better advised to give a more
accurate, but not overly negative, description of Mary’s job performance (while staying within the
conditional privilege of avoiding a defamation action), rather than generate animosity and gain a reputation
as a liar among other businesses in the area.
4. You have just received a report suggesting that a chemical your company uses in its manufacturing process
is very dangerous. You have not read the report, but you are generally aware of its contents. You believe
that the chemical can be replaced fairly easily but that if word gets out, panic may set in among employees
and community members. A reporter asks if you have seen the report, and you say no. Is your behavior
right or wrong? Explain.
Answer:
Utilitarianism. Weighing the arguments for profitability to shareholders and fairness to shareholders
and employees against the arguments for good corporate citizenship and long-run profits, an appropriate
response might be that you are aware of the report but haven’t thoroughly read or studied it. Proceeding
with a course that acknowledges (at least internally) past dangerous practices, while immediately correcting
the current problems, and correcting future problems in a timely manner, may be an appropriate legal as
well as moral response to this problem. This is one of the reasons many corporations have a corporate
spokesperson to give appropriate and consistent responses.
5. You and Joe Jones, your neighbor and friend, bought lottery tickets at the corner drugstore. While
watching the lottery drawing on television with you that night, Joe leaps from the couch, waves his lottery
ticket, and shouts, “I've got the winning number!” Suddenly, he clutches his chest, keels over, and dies on
the spot. You are the only living person who knows that Joe, not you, bought the winning ticket. If you
substitute his ticket for yours, no one will know of the switch, and you will be $10 million richer. Joe's only
living relative is a rich aunt whom he despised. Will you switch his ticket for yours? Explain.
Answer:
Fundamentalism. Perhaps an advocate of utilitarianism or social egalitarianism might feel that
switching the ticket would be morally appropriate on the premise that it maximized pleasure and was an
appropriate distribution of wealth. However, such a moral rationalization would demonstrate the flaws in
both theories. There is no escaping the fact that switching the tickets would be improper under the law and
most moral theories.
6. Omega, Inc., a publicly held corporation, has assets of $100 million and annual earnings in the range of
$13 to $15 million. Omega owns three aluminum plants, which are profitable, and one plastics plant,
which is losing $4 million a year. The plastics plant shows no sign of ever becoming profitable, because of
its very high operating costs, and there is no evidence that the plant and the underlying real estate will
increase in value. Omega decides to sell the plastics plant. The only bidder for the plant is Gold, who
intends to use the plant for a new purpose, to introduce automation, and to replace all current employees.
Would it be ethical for Omega to turn down Gold's bid and keep the plastics plant operating indefinitely for
the purpose of preserving the employees' jobs? Explain.
© 2027 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 2
accessible website, in whole or in part.
,Solution and Answer Guide: Mann/Roberts, Smith & Roberson’s Business Law, 19e, 9798214054377; Chapter 2: Business Ethics and the Social Responsibility of
Business
Answer:
Egalitarianism. Indefinite maintenance of the plastics plant may strike one as being the morally
correct thing to do. The moral basis for such a decision would be essentially egalitarianism, where the
wealth generated by many is redistributed to benefit others. However, as the basis for an economic system,
such an approach may be doomed to ultimate failure in that it does not rectify anything and only prolongs a
perhaps snowballing problem that could taint and impair the job security of everyone employed by Omega.
If managerial and operational changes truly cannot rectify the net loss situation suffered by the plastics
plant, sale of the plant to Gold may, in a broader context, be the morally correct thing to do.
7. You are the sales manager of a two-year-old electronics firm. At times, the firm has seemed to be on the
brink of failure but recently has begun to be profitable. In large part, the profitability is due to the
aggressive and talented sales force you recruited. Two months ago, you hired Alice North, an honor
graduate from State University who decided that she was tired of the research department and wanted to
try sales.
Almost immediately after you send Alice out for training with Brad West, your best salesperson, he begins
reporting to you an unexpected turn of events. According to Brad, “Alice is terrific: she's confident,
smooth, and persistent. Unfortunately, a lot of our buyers are good old boys who just aren't comfortable
around young, bright women. Just last week, Hiram Jones, one of our biggest customers, told me that he
simply won't continue to do business with ‘young chicks’ who think they invented the world. It's not that
Alice is a know-it-all. She's not. It's just that these guys like to booze it up a bit, tell some off-color jokes,
and then get down to business. Alice doesn't drink, and although she never objects to the jokes, it's clear
she thinks they're offensive.” Brad believes that several potential deals have fallen through “because the
mood just wasn't right with Alice there.” Brad adds, “I don't like a lot of these guys' styles myself, but I go
along to make the sales. I just don't think Alice is going to make it.”
When you call Alice in to discuss the situation, she concedes the accuracy of Brad's report but indicates
that she's not to blame and insists that she be kept on the job. You feel committed to equal opportunity but
do not want to jeopardize your company's ability to survive. What should you do?
Answer:
Utilitarianism. This is a common problem with a myriad of legal and moral implications. From a
profitability standpoint, especially in the case of a company on the brink of economic failure, ignoring the
requirements and whims of customers can amount to economic death. From a legal standpoint, the Equal
Opportunity laws operate harshly against an employer that discriminates on the basis of sex or race in
hiring and promotional activities. Employees are frequently aware of their rights, yet wishing to help the
business of an employer and otherwise acting as a good “team player.” A possible response might be (with
the consent of Alice) attempting to divide sales accounts to give to Alice those accounts where her sex
would be a neutral or perhaps positive factor, while retaining for Brad oversight of the “good old boy”
accounts. Such an approach would acknowledge both her legal rights and her justifiable expectations while
not undermining the profitability of a company whose very existence is at issue. Best utilization of
employees is critical to any corporation, and this includes sensitivity to both the employees’ needs and the
customers’ needs.
8. Major Company subcontracted the development of part of a large technology system to Start-up Company,
a small corporation specializing in custom computer systems. The contract, which was a major
breakthrough for Start-up Company and crucial to its future, provided for an initial development fee and
subsequent progress payments, as well as a final date for completion.
Start-up Company provided Major Company with periodic reports indicating that everything was on
schedule. After several months, however, the status reports stopped coming, and the company missed
© 2027 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 3
accessible website, in whole or in part.
, Solution and Answer Guide: Mann/Roberts, Smith & Roberson’s Business Law, 19e, 9798214054377; Chapter 2: Business Ethics and the Social Responsibility of
Business
delivery of the schematics, the second major milestone. As an in-house technical consultant for Major
Company, you visit Start-up Company and find not only that they are far behind schedule but also that they
had lied about their previous progress. Moreover, you determine that this slippage has put the schedule for
the entire project in jeopardy. The cause of Start-up's slippage was the removal of personnel from your
project to work on short-term contracts to obtain money to meet the weekly payroll.
Your company decided that you should stay at Start-up Company to monitor its work and to assist in the
design of the project. After six weeks and some progress, Start-up is still way behind its delivery dates.
Nonetheless, you are now familiar enough with the project to complete it in-house with Major's personnel.
Start-up is still experiencing severe cash flow problems and repeatedly requests payment from Major. But
your CEO, furious with Start-up's lies and deceptions, wishes to “bury” Start-up and finish the project
using Major Company's internal resources. She knows that withholding payment to Start-up will put them
out of business. What do you do? Explain.
Answer:
Situational Ethics. We don't know if the development fee was ever paid to Start-up Company. Major
had an obligation to pay the initial development fee. If it was paid and Start-up did not produce the required
progress reports, then Major is correct to withhold payment. Situational ethics will come into play when
you decide whether or not to give Start-up more time to complete the work. If the start-up fee was not paid,
and it was Major’s failure to pay on schedule that caused Start-up to divert their personnel, then Major
needs to take some share of the blame.
9. A customer requests certain sophisticated tests on equipment he purchased from your factory. Such tests
are very expensive and must be performed by a third party. The equipment was tested as requested and met
all of the industry standards but showed anomalies that could not be explained. Though the problem
appears to be minor, you decide to inspect the unit to try to understand the test data—a very expensive and
time-consuming process. You inform the customer of this decision. A problem is found, but it is minor and
highly unlikely ever to cause the unit to fail. In addition to the time and expense required to rebuild the
equipment, notifying the customer that you are planning to rebuild the unit would also put your overall
manufacturing procedures in question. Should you fix the problem, ship the equipment as is, or inform the
customer? Explain.
Answer:
Fundamentalism. You must inform the customer. The customer apparently has the right to request
such testing and as such you have ethical responsibility to inform the customer of all factors. The ultimate
decision should be made by the customer. However, you have the obligation to comply with the legal and
governmental responsibilities within your industry.
10. You are a project manager for a company making a major proposal to a Middle Eastern country. Your
major competition is from Japan.
a. Your local agent, who is closely tied to a very influential sheikh, would receive a 5 percent commission
if the proposal were accepted. Near the date for the decision, the agent asks you for $150,000 to
grease the skids so that your proposal is accepted. What do you do?
b. What do you do if, after you say no, the agent goes to your vice president, who provides the money?
c. Your overseas operation learns that most other foreign companies in this Middle Eastern location
bolster their business by exchanging currency on the gray market. You discover that your division is
twice as profitable as budgeted due to the amount of domestic currency you have received on the gray
market. What do you do?
Answer:
© 2027 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 4
accessible website, in whole or in part.
Business
Solution and Answer Guide
MANN/ROBERTS, SMITH & ROBERSON’S BUSINESS LAW, 19E, 9798214054377; C HAPTER 2:
BUSINESS ETHICS AND THE SOCIAL RESPONSIBILITY OF BUSINESS
TABLE OF CONTENTS
Answers to Problems....................................................................................................1
ANSWERS TO PROBLEMS
1. You have an employee who has a chemical imbalance in the brain that causes him to be severely
emotionally unstable. The medication that is available to treat this schizophrenic condition is extremely
powerful and decreases the taker's life span by one to two years for every year that the user takes it. You
know that his doctors and family believe that it is in his best interest to take the medication. What course of
action should you follow?
Answer:
Arguments Against Social Responsibility. This question illustrates one scenario where
arguments against corporate social responsibility could come into play. If you take the “anti-social
responsibility” position that a corporation has—as its primary objective—a fundamental responsibility to
maximize profits, the employer could make the medication a requirement for the employee to remain in the
workforce. It could be argued that this decision may also decrease the possibility of injury or deterioration
in working conditions for other employees. The other side of the argument, however, is that this type of
decision is too personal for a corporation to make. The ultimate determination should reside with the
employee, and it should be his free decision to take or not take the medication. This puts the responsibility
back where it belongs, on the employee and his family.
2. You have a very shy employee who is from another country. After a time, you notice that the quality of her
performance is deteriorating. You find an appropriate time to speak with her and determine that she is
extremely distraught. She informs you that her family has arranged a marriage for her and that she refuses
to obey their contract. She further informs you that she is contemplating suicide. Two weeks later, with her
poor performance continuing, you determine that she is on the verge of a nervous breakdown; once again
she informs you that she is going to commit suicide. What should you do? Consider further that you can
petition a court to have her involuntarily committed to a mental hospital. You know, however, that her
family would consider such a commitment an extreme insult and that they might seek retribution. Does this
prospect alter your decision? Explain.
Answer:
Arguments For Social Responsibility. A good, responsible manager would be hard-pressed to
demand that the employee either improve her on-the-job performance or face dismissal. However, initiating
an involuntary committal to a mental hospital could constitute an improper invasion of rights with many
legal repercussions. An interim step of providing appropriate psychological social counseling (perhaps at
company expense) would seem to best fit into the concept of good corporate management. This would
benefit not only the individual, but the corporation may be able to keep a valued employee. The cost of
counseling is likely to be less expensive than hiring and training a new employee.
© 2027 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 1
accessible website, in whole or in part.
,Solution and Answer Guide: Mann/Roberts, Smith & Roberson’s Business Law, 19e, 9798214054377; Chapter 2: Business Ethics and the Social Responsibility of
Business
3. You receive a telephone call from a company that you never do business with requesting a reference on one
of your employees, Mary Sunshine. You believe that Mary is generally incompetent and would be delighted
to see her take another job. You give her a glowing reference. Is this right? Explain.
Answer:
Utilitarianism. Pawning off an incompetent employee would certainly help the profitability of an
employer. However, relatively accurate referrals are expected, and good corporate citizenship would
impose a moral responsibility to act properly. The employer would be better advised to give a more
accurate, but not overly negative, description of Mary’s job performance (while staying within the
conditional privilege of avoiding a defamation action), rather than generate animosity and gain a reputation
as a liar among other businesses in the area.
4. You have just received a report suggesting that a chemical your company uses in its manufacturing process
is very dangerous. You have not read the report, but you are generally aware of its contents. You believe
that the chemical can be replaced fairly easily but that if word gets out, panic may set in among employees
and community members. A reporter asks if you have seen the report, and you say no. Is your behavior
right or wrong? Explain.
Answer:
Utilitarianism. Weighing the arguments for profitability to shareholders and fairness to shareholders
and employees against the arguments for good corporate citizenship and long-run profits, an appropriate
response might be that you are aware of the report but haven’t thoroughly read or studied it. Proceeding
with a course that acknowledges (at least internally) past dangerous practices, while immediately correcting
the current problems, and correcting future problems in a timely manner, may be an appropriate legal as
well as moral response to this problem. This is one of the reasons many corporations have a corporate
spokesperson to give appropriate and consistent responses.
5. You and Joe Jones, your neighbor and friend, bought lottery tickets at the corner drugstore. While
watching the lottery drawing on television with you that night, Joe leaps from the couch, waves his lottery
ticket, and shouts, “I've got the winning number!” Suddenly, he clutches his chest, keels over, and dies on
the spot. You are the only living person who knows that Joe, not you, bought the winning ticket. If you
substitute his ticket for yours, no one will know of the switch, and you will be $10 million richer. Joe's only
living relative is a rich aunt whom he despised. Will you switch his ticket for yours? Explain.
Answer:
Fundamentalism. Perhaps an advocate of utilitarianism or social egalitarianism might feel that
switching the ticket would be morally appropriate on the premise that it maximized pleasure and was an
appropriate distribution of wealth. However, such a moral rationalization would demonstrate the flaws in
both theories. There is no escaping the fact that switching the tickets would be improper under the law and
most moral theories.
6. Omega, Inc., a publicly held corporation, has assets of $100 million and annual earnings in the range of
$13 to $15 million. Omega owns three aluminum plants, which are profitable, and one plastics plant,
which is losing $4 million a year. The plastics plant shows no sign of ever becoming profitable, because of
its very high operating costs, and there is no evidence that the plant and the underlying real estate will
increase in value. Omega decides to sell the plastics plant. The only bidder for the plant is Gold, who
intends to use the plant for a new purpose, to introduce automation, and to replace all current employees.
Would it be ethical for Omega to turn down Gold's bid and keep the plastics plant operating indefinitely for
the purpose of preserving the employees' jobs? Explain.
© 2027 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 2
accessible website, in whole or in part.
,Solution and Answer Guide: Mann/Roberts, Smith & Roberson’s Business Law, 19e, 9798214054377; Chapter 2: Business Ethics and the Social Responsibility of
Business
Answer:
Egalitarianism. Indefinite maintenance of the plastics plant may strike one as being the morally
correct thing to do. The moral basis for such a decision would be essentially egalitarianism, where the
wealth generated by many is redistributed to benefit others. However, as the basis for an economic system,
such an approach may be doomed to ultimate failure in that it does not rectify anything and only prolongs a
perhaps snowballing problem that could taint and impair the job security of everyone employed by Omega.
If managerial and operational changes truly cannot rectify the net loss situation suffered by the plastics
plant, sale of the plant to Gold may, in a broader context, be the morally correct thing to do.
7. You are the sales manager of a two-year-old electronics firm. At times, the firm has seemed to be on the
brink of failure but recently has begun to be profitable. In large part, the profitability is due to the
aggressive and talented sales force you recruited. Two months ago, you hired Alice North, an honor
graduate from State University who decided that she was tired of the research department and wanted to
try sales.
Almost immediately after you send Alice out for training with Brad West, your best salesperson, he begins
reporting to you an unexpected turn of events. According to Brad, “Alice is terrific: she's confident,
smooth, and persistent. Unfortunately, a lot of our buyers are good old boys who just aren't comfortable
around young, bright women. Just last week, Hiram Jones, one of our biggest customers, told me that he
simply won't continue to do business with ‘young chicks’ who think they invented the world. It's not that
Alice is a know-it-all. She's not. It's just that these guys like to booze it up a bit, tell some off-color jokes,
and then get down to business. Alice doesn't drink, and although she never objects to the jokes, it's clear
she thinks they're offensive.” Brad believes that several potential deals have fallen through “because the
mood just wasn't right with Alice there.” Brad adds, “I don't like a lot of these guys' styles myself, but I go
along to make the sales. I just don't think Alice is going to make it.”
When you call Alice in to discuss the situation, she concedes the accuracy of Brad's report but indicates
that she's not to blame and insists that she be kept on the job. You feel committed to equal opportunity but
do not want to jeopardize your company's ability to survive. What should you do?
Answer:
Utilitarianism. This is a common problem with a myriad of legal and moral implications. From a
profitability standpoint, especially in the case of a company on the brink of economic failure, ignoring the
requirements and whims of customers can amount to economic death. From a legal standpoint, the Equal
Opportunity laws operate harshly against an employer that discriminates on the basis of sex or race in
hiring and promotional activities. Employees are frequently aware of their rights, yet wishing to help the
business of an employer and otherwise acting as a good “team player.” A possible response might be (with
the consent of Alice) attempting to divide sales accounts to give to Alice those accounts where her sex
would be a neutral or perhaps positive factor, while retaining for Brad oversight of the “good old boy”
accounts. Such an approach would acknowledge both her legal rights and her justifiable expectations while
not undermining the profitability of a company whose very existence is at issue. Best utilization of
employees is critical to any corporation, and this includes sensitivity to both the employees’ needs and the
customers’ needs.
8. Major Company subcontracted the development of part of a large technology system to Start-up Company,
a small corporation specializing in custom computer systems. The contract, which was a major
breakthrough for Start-up Company and crucial to its future, provided for an initial development fee and
subsequent progress payments, as well as a final date for completion.
Start-up Company provided Major Company with periodic reports indicating that everything was on
schedule. After several months, however, the status reports stopped coming, and the company missed
© 2027 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 3
accessible website, in whole or in part.
, Solution and Answer Guide: Mann/Roberts, Smith & Roberson’s Business Law, 19e, 9798214054377; Chapter 2: Business Ethics and the Social Responsibility of
Business
delivery of the schematics, the second major milestone. As an in-house technical consultant for Major
Company, you visit Start-up Company and find not only that they are far behind schedule but also that they
had lied about their previous progress. Moreover, you determine that this slippage has put the schedule for
the entire project in jeopardy. The cause of Start-up's slippage was the removal of personnel from your
project to work on short-term contracts to obtain money to meet the weekly payroll.
Your company decided that you should stay at Start-up Company to monitor its work and to assist in the
design of the project. After six weeks and some progress, Start-up is still way behind its delivery dates.
Nonetheless, you are now familiar enough with the project to complete it in-house with Major's personnel.
Start-up is still experiencing severe cash flow problems and repeatedly requests payment from Major. But
your CEO, furious with Start-up's lies and deceptions, wishes to “bury” Start-up and finish the project
using Major Company's internal resources. She knows that withholding payment to Start-up will put them
out of business. What do you do? Explain.
Answer:
Situational Ethics. We don't know if the development fee was ever paid to Start-up Company. Major
had an obligation to pay the initial development fee. If it was paid and Start-up did not produce the required
progress reports, then Major is correct to withhold payment. Situational ethics will come into play when
you decide whether or not to give Start-up more time to complete the work. If the start-up fee was not paid,
and it was Major’s failure to pay on schedule that caused Start-up to divert their personnel, then Major
needs to take some share of the blame.
9. A customer requests certain sophisticated tests on equipment he purchased from your factory. Such tests
are very expensive and must be performed by a third party. The equipment was tested as requested and met
all of the industry standards but showed anomalies that could not be explained. Though the problem
appears to be minor, you decide to inspect the unit to try to understand the test data—a very expensive and
time-consuming process. You inform the customer of this decision. A problem is found, but it is minor and
highly unlikely ever to cause the unit to fail. In addition to the time and expense required to rebuild the
equipment, notifying the customer that you are planning to rebuild the unit would also put your overall
manufacturing procedures in question. Should you fix the problem, ship the equipment as is, or inform the
customer? Explain.
Answer:
Fundamentalism. You must inform the customer. The customer apparently has the right to request
such testing and as such you have ethical responsibility to inform the customer of all factors. The ultimate
decision should be made by the customer. However, you have the obligation to comply with the legal and
governmental responsibilities within your industry.
10. You are a project manager for a company making a major proposal to a Middle Eastern country. Your
major competition is from Japan.
a. Your local agent, who is closely tied to a very influential sheikh, would receive a 5 percent commission
if the proposal were accepted. Near the date for the decision, the agent asks you for $150,000 to
grease the skids so that your proposal is accepted. What do you do?
b. What do you do if, after you say no, the agent goes to your vice president, who provides the money?
c. Your overseas operation learns that most other foreign companies in this Middle Eastern location
bolster their business by exchanging currency on the gray market. You discover that your division is
twice as profitable as budgeted due to the amount of domestic currency you have received on the gray
market. What do you do?
Answer:
© 2027 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 4
accessible website, in whole or in part.
