Randy White Is the Executive Director of a Non-Profit Preschool

question 224

Multiple Choice

Randy White is the executive director of a non-profit preschool for special needs children. Part of Randy's responsibilities include fundraising for the preschool. Because of his experience and success in operating specialty pre-schools, Randy is sought after as a consultant at locations around the country to assist in the start-up and operation of such facilities. Randy does so quite frequently. Randy does not take vacation time for this work, and his consultant fees (which range from $750 - $1500 per day) are kept by him as personal income. Randy uses his secretary at the preschool to book his travel arrangements and prepare his consultant reports and bills for these outside engagements.

• A) Randy's activities are ethical so long as disclosed.
• B) Randy is using the time and resources of his employer in an unethical manner.
• C) Randy's activities are ethical whether disclosed or undisclosed.
• D) There is no conflict of interest in Randy's activities.

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Definitions:

Present Value

The contemporary evaluation of a future financial sum or cash inflow patterns, using a defined rate of return.

Simple Interest

Simple interest is a method of calculating the interest charge on a loan or investment based on the original principal amount and the rate of interest without compounding.

Account Balance

The amount of money held in a financial account, which reflects all transactions made.

Interest

The cost of borrowing money, usually expressed as a percentage of the principal, paid by the borrower for the use of borrowed funds.