Steve Is Deep in Debt Due to a Gambling Problem

question 21

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 these

---

Definitions:

Closely Related

Closely Related describes items, individuals, or concepts that are closely connected in terms of characteristics, functions, or relationships.

Forward Contract

An agreement between two entities to purchase or sell a certain asset at a specified price and date in the future.

Wheat

Wheat is a staple grain that serves as a major food source globally, and it also plays a significant role in commodity trading markets.