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Question - Many tobacco companies have paid billions because of smoking-related illnesses. One example, British American Tobacco (BAT), a leading cigarette manufacturer, paid more than $2,000,000,000 in settlement payments in one year.
Required -
(a) Assuming that you are the chief financial officer (CFO) responsible for the financial statements of BAT. What ethical issue would you face as you consider what to report in your company's annual report about the cash payments? What is the ethical course of action for you to take in this situation?
(b) What are some of the negative consequences to BAT for not telling the truth? What are some of the negative consequences to BAT for telling the truth?
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