East Coast brokerage firms

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      Consequences of not telling the president

• The president may continue to make speeches based on the inaccurate projections, which could mislead the brokerage firms and harm the company's reputation.
• The company's stock price may fall.
• The president may be accused of fraud if the inaccuracy is later discovered.
• If you are found to have known about the inaccuracy and did not tell the president, you could also be accused of fraud and could lose your job.

Ethical considerations

• As an accountant, you have a duty to be honest and accurate in your work.
• You also have a duty to your employer to avoid misleading them.
• In this situation, the ethical thing to do is to tell the president about the mistake, even though it may have negative consequences for you.

The president also has ethical considerations to make. He has a duty to the company's shareholders to provide them with accurate information. He also has a duty to the brokerage firms to not mislead them. In this situation, the ethical thing for the president to do is to withdraw the inaccurate projections and issue a correction. Ultimately, the decision of whether or not to tell the president is up to you. However, it is important to weigh the potential consequences of both options and to make the decision that you believe is most ethical. Here are some additional things to consider:

• The severity of the miscalculation. If the miscalculation is minor, it may be less important to tell the president. However, if the miscalculation is major, it is important to tell him as soon as possible.
• The likelihood that the president will find out about the miscalculation on his own. If the president is likely to find out about the miscalculation on his own, it may be better to tell him yourself. This will give you a chance to explain the situation and to minimize the damage.

Your relationship with the president. If you have a good relationship with the president, he may be more likely to forgive you for the mistake. However, if you have a strained relationship with the president, he may be more likely to blame you for the mistake.  

Sample Solution

     

Consequences of telling the president

• The president will be embarrassed and may lose credibility with the brokerage firms.
• The company's stock price may fall.
• The president may blame you for the mistake and you could lose your job.
• However, telling the truth is the ethical thing to do and it will help to ensure that the president does not make any further mistakes based on the inaccurate projections.