Sam Dryer Owns and Operates Sam's Burgers, a Small Fast

question 13

Essay

Sam Dryer owns and operates Sam's Burgers, a small fast food store, located at the edge of City College campus in Newton, Ohio. After several very profitable years, Sam's Burgers began to have problems. Most of the problems were related to Sam's expansion of the eating area in the restaurant without corresponding increases in the food preparation area. Sam does not have the cash or financial backing to expand further. He has therefore decided to sell his business.
Jerry Finney is interested in purchasing the business. However, he is located in another city and is unfamiliar with Newton. He has asked Sam why he is selling Sam's Burgers. Sam replies that his elderly mother requires extra care, and that his brother needs help in his manufacturing business. Both are true, but neither is his primary reason for selling. Sam reasons that Jerry should not have asked him anyway, since profitable businesses don't come up for sale.
Required:
1. Identify the stakeholders in this situation.
2. Did Sam act ethically in not revealing fully his reasons for selling the business? Why or why not?

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Definitions:

Employer-Paid Retirement Program

A retirement benefit plan funded by an employer that provides income to employees after their retirement.