Walter Waterson Owns a Lawn Irrigation System Business

question 38

Multiple Choice

Walter Waterson owns a lawn irrigation system business. He manages the installations and maintenance of these systems. Several customers are golf courses, but he serves a large group of residential customers as well. When he started the business 10 years ago, he promised to always operate within the legal limits of the law, but lately, the competition is eating him alive. Large competitors have hired illegal immigrants to perform the manual labor, and they do not pay taxes on these employees-they just pay them in cash at the end of the week. Employment taxes are a burden to him. Walter does not want to hire illegal workers. There's a risk if you permit an illegal worker to drive a truck; or, if he/she has an accident on the job. You have just studied business ethics in your class. You inform Walter that

• A) taxes only need to be paid for the owners.
• B) he is not only taking a chance that a bigger problem may occur, he is indirectly setting the ethics code for his business.
• C) small businesses may not be able to worry about ethics codes. These types of documents are better suited for big business.
• D) it is not unethical to try to better the lives of others. Everyone needs jobs.

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Definitions:

College Degree

A qualification awarded to students upon successful completion of a course of study in higher education, typically representing a level of achievement in a particular field.

Dual Labor Market

An economic theory which suggests that the labor market is divided into two segments: the primary (high wage, stable jobs) and the secondary (low wage, high turnover jobs).

Primary Market

The financial market for new securities issues, where companies sell new stocks and bonds to the public for the first time.

Secondary Market

A marketplace where investors buy and sell securities or assets from other investors, rather than from issuing companies.