Identified a concept as a potential project

Reference no: EM13682734

Jabinski Company's research and development department has identified a concept as a potential project that it believes will lead to a new product. The R&D department feels the new product can become very profitable. Due to the required investment needed for this project, approval from the vice president of finance, Jim Jones, is required. Jones is aware that company profits have been down and as a result is somewhat reluctant to approve a project that will incur a significant amount of expenses. Further, these expenses cannot be capitalized in accordance with GAAP. Jones also knows that if an outside firm is hired to perform the work and obtains a patent for the process, Jabinski Company can then purchase the patent from the outside firm and subsequently record the expenditure as an intangible asset. Jones is also aware that the company's own R&D department is top notch, and he is confident that they can do the work with little difficulties.
What are the ethical issues, if any, involved?
What would you recommend that Jones do and why?

Reference no: EM13682734

Questions Cloud

Find what the speed of proton relative to laboratory frame : An electron moves to the right with a speed of 0.86c relative to the laboratory frame. Obtain the speed of proton relative to laboratory frame

Find what fraction of light passes : Two polarizer's have their polarizing axis at 90 degree. Find what fraction of light passes through the three polarizers

The purchase price was assigned to television rights : How much of the purchase price was assigned to television rights?

How much energy is stored in the capacitor : A 24 Volt battery is connected to a capacitor, resulting in 47 µC of charge stored on the capacitor. Obtain how much energy is stored in the capacitor

Identified a concept as a potential project : Identified a concept as a potential project

Find what the direction and magnitude of the magnetic field : A wire 30 centimeter long with an east-west orientation carries a current of 3 Amp eastward. evaluate the direction and magnitude of the magnetic field

Obtain what the speed of the heavier fragment : An unstable particle at rest breaks up into two fragments of unequal mass. evaluate the speed of the heavier fragment

What is the velocity of the boat relative to shore : A river flows due east at 1.50 m/s. A boat crosses the river from the south shore to the north shore with maintaining a constant velocity of 11.0 m/s due north relative to the water. What is the velocity of the boat relative to shore?

Compute the force on an electron if the accelerating plates : Compute the force on an electron if the accelerating plates are held at a potential dissimilarity of 600. (Note this is Vg.) Suppose a distance of 1cm among the plates. Compare this force, Fe, to the force due to gravity, Fg; I.e., compute Fg/Fe. Can..

User Account

All Pages