Steve Is Deep in Debt Due to a Gambling Problem

question 81

Multiple Choice

Steve is deep in debt due to a gambling problem.He is the bookkeeper for a family-owned business, Cal Poly Greenery.The company has only three employees - Steve, the husband, and the wife.All three have been friends for many years.One day the loan shark who lent Steve $20,000 comes knocking at his door asking for repayment of the loan.Steve convinces the loan shark to give him another day.The following day Steve writes a check on the company's books to himself for $20,000.Since he reconciles the bank accounts and prepares the financial statements, Steve knows it's unlikely the owners will ever know about what he has done.From an ethical perspective, Steve has

• A)Violated the trust placed in him by the owners
• B)Risked his reputation if the owners find out
• C)Compromised his integrity
• D)All of the above

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Definitions:

Commencement

Commencement refers to the beginning or start of something, often used in legal contexts to denote the start of legal proceedings or the operative period of a contract.

Trustee

An individual or organization that holds or manages property or assets for the benefit of another party.

Chapter 11

Chapter 11 refers to a section of the United States Bankruptcy Code that permits reorganization under the bankruptcy laws of the United States.

Chapter 7

A provision under the US Bankruptcy Code for the process of liquidation, where a debtor's assets are sold to pay off creditors.