Assume You Were in Sherron Watkins' Position and You Informed

question 61

Essay

Assume you were in Sherron Watkins' position and you informed Ken Lay that the company might implode as a result of the accounting scandal. After an investigation by the lawyers who said there was nothing to worry about, Lay told you he would take no steps to act on your concerns. Use the relevant elements of the decision making model described in chapter 2 including stakeholder and ethical considerations and decide on a course of action for Watkins.

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Definitions:

Withholding Allowance

A claim made by employees on the W-4 form to reduce the federal income tax withheld from their paycheck.

Taxable Income

The portion of an individual's or business's income that is subject to income tax, after exemptions and deductions.

Taxable Income

The amount of an individual's or entity's income used to determine how much tax is owed, calculated as gross income minus deductions and exemptions.

Monthly Salary

The amount of money an employee is paid each month for their job performance, not including bonuses or overtime pay.