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Question - A member of Jefferson City Council offers to help the Council earn cash for its project in Bond issue for a stadium to be used by a High School. The Council is considering issuing Revenue Bonds of $2,000,000 at 5% annual interest payable to the bond holders. A Council member offers to get the Council take a Long-term Loan from a bank he has interest in for $2,000,000 at 3%. He informs the Council that approval should be given for 5% because the difference of 2% on $2,000,000 will be shared by the Council members. The Council after some debate approved the interest rate of 5% and authorized the Councilman to finalize the deal.
Required -
1. What are the ethical principles involved in this case? List but do not discuss.
2. Who are the stakeholders who would be affected when things go wrong? List but do not discuss.
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