Ron Is an Accountant Who Was Contacted by Zebra Toy

question 35

Essay

Ron is an accountant who was contacted by Zebra Toy Company to prepare financial statements.Zebra Toy Company told Ron that it wished to present these documents to Lion Wholesalers,Inc. ,a large supplier of toys.If Lion is convinced that Zebra Toy Company is financially solid,it will issue Zebra a large line of credit.
​
After Ron prepares the financial documents,Zebra presents the information to Lion Wholesalers and also to Tiger Toy Company,another wholesaler of toys.Zebra wishes to obtain a line of credit from Tiger as well as from Lion.If Ron committed a serious error by overstating Zebra Toy Company's financial soundness and the two creditors,Lion and Tiger,are damaged as a result,can these third parties recover damages from Ron? Explain.

---

Definitions:

Goleman

Refers to Daniel Goleman, an author and psychologist who popularized the concept of emotional intelligence and its importance in leadership.

Social Judgment Skill

The ability to understand and influence the opinions, attitudes, and emotions of others, often critical in leadership and interpersonal interactions.

Sociability

The quality of being inclined to seek social interactions and to be friendly and approachable.

Trait Approach

A perspective in the study of leadership that focuses on identifying specific attributes that differentiate leaders from non-leaders.