Randy, a Small Café Owner, Is Facing Possible Bankruptcy Due

question 79

Essay

Randy, a small café owner, is facing possible bankruptcy due to a severe decrease in business in his restaurant. Evelyn, a friend of Randy, approached him about hiring illegal immigrants because Randy can pay those workers a lower pay rate and save on payroll. Discuss some of the legal and ethical issues involved in this situation. How should Randy respond to his ethical dilemma-should he hire the illegal immigrants or not? Explain your answer.

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Definitions:

Financial Viability

The ability of a business to generate sufficient revenue to cover its expenses and continue operations over the long term.

Business Model Canvas

A strategic management template for developing new or documenting existing business models, consisting of 9 interconnected components.

Revenue Streams

Various sources from which a business earns money, contributing to its overall income.

CVP

Cost-Volume-Profit Analysis, a financial tool used to determine how changes in costs and sales volume affect a company's operating income and net income.