The Manager of a Business Unit of a Large Corporation

question 77

Essay

The manager of a business unit of a large corporation made some projections regarding sales and profits for the upcoming final quarter of the year. The managers' performance evaluation and compensation depended significantly on his ability to meet budget goals. The manager discovered that the final quarter would have to be a particularly good quarter in order to meet these goals. He decided to implement a sales program offering liberal payment terms in order to pull some sales that would normally occur next year into the current year. Customers accepting delivery in the fourth quarter would not have to pay the invoice for 140 days. Also, he sold some equipment that was not being used and realized a significant profit on the sale.
Required:
Are these actions ethical? Why or why not?

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Definitions:

Expert Consultant

A professional with extensive knowledge in a specific field, hired to advise businesses.

Consulting Engagement

Involves hiring external experts to provide insights, advice, and solutions for specific organizational challenges.

Banking Law

The field of law that deals with banking and the regulation of financial institutions.

Finally Paid

Pertains to a payment or series of payments that concludes an outstanding obligation or debt, leaving no balance.