Consumer loan business-describes the ethical issue

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Reference no: EM131287096

Ethics Assigment

Rockville Loan Company is in the consumer loan business. Rockville borrows from banks and loans out the money at higher interest rates.?Rockville's bank requires Rockville to submit quarterly financial statements to keep its line of credit.? Rockville's main asset is Notes Receivable.? Therefore, Uncollectible-Account Expense and Allowance for Uncollectible Accounts are important accounts for the company.

Rachel? Laber, the? company's owner, prefers that net income reflect a steady increase in a smooth? pattern, rather than an increase in some periods and a decrease in other periods. To report smoothly increasing net? income, Laber underestimates? Uncollectible-Account Expense in some periods. In other? periods, Laber overestimates the expense. She reasons that the income? over-statements roughly offset the income understatements over time.

?Requirements:

1. What is the ethical issue in this? situation?

2. Who are the? stakeholders? What are the possible consequences to? each?

3. Analyze the alternatives from the following? standpoints: (a)? economic, (b)? legal, (c) ethical.

4. What would you? do? How would you justify your? decision?

Enter your answer in the space provided? below, and click submit.?

Format:

Introduction: Prepares a well organized introduction. idendifies and describes the ethical issue(s)

Identifies the relevant stakeholders and the possible consequences to each - external and internal stakeholders.

Specifies the options for alternative courses of action considering economic, legal, and ethical standpoints. Also, understands the impact of each option on the stakeholders.

Make a desicion

Reference no: EM131287096

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