An accounting professor who is a CPA and a member of the AICPA is teaching an online class. To help his students learn the material, he has posted the solutions to all the questions and problems at the end of the chapters in the text he uses to a public website for the class. That is, access to the website is not limited to the students enrolled in the class but can be accessed by anyone. The professor was not the author of the text.
a. Do you believe the professor’s action is ethical? Why or why not?
b. Do you believe that students who search the internet for the instructor’s solution manual to help them with graded assignments are acting ethically? Why or why not?
Which of the following statements is most correct?
a. The ability of firms to engage in socially beneficial projects that involve voluntary costs is constrained by competition.
b. The actions that maximize a firm’s stock price are always inconsistent with maximizing social welfare.
c. The concepts of social responsibility and ethical responsibility on the part of corporations are completely different and neither is relevant in maximizing stock price.
d. If government did not mandate socially responsible corporate actions, such as those relating to product safety and fair hiring practices, firms in competitive markets would not pursue such policies voluntarily.
The system through which management is given financial information for use in conducting the affairs of the business and in reporting to owners and other interested parties is called the:
a. accounting system.
b. fiduciary system.
c. operations system.
d. auditing system.
