Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Accounting Basics Expert

Big Business tobacco (BBT) is a large Australian producer of tobacco products including a market leader brand of cigarettes. With the continuing development of Asian countries such as China and its moved to market based economy, the company has made the decision to sell its cigarettes in this large market from the beginning of next month. Cigarettes will be sold in the packs of 40's.

Mary Bender, marketing manager is discussing the decision of cigarette packets for the Asian market with Randell Hedges, the company's public relation manager. Having agreed on the basic design of the pack, Hedges raised the issue of whether to include the normal health warning on the pack, which has to be displayed under Australian law. He emphasises on recent medical findings which predicted many hundreds of thousands of deaths from cigarette smoking in the next few years particularly in developing countries.

Mary Bender, must strongly opposed to including a health hazard warning on the packs destined for Asian market. She explained in this business it is the bottom line which matters -- We have to think of our shareholders. BBT stands to lose considerable market share to competitors if it includes such a warning besides, it is not a legal requirement in many Asian countries to display a health warrant on cigarette. If Asian law is subsequently amended than we will be one of the first to comply. Besides the managing director supports me on this one.

Hedges expressed a final opinion: the company could be better off in the long term by being seen to be acting with corporate responsibility and demonstrating some concerns for its consumers.

Besides, such warnings have not been detrimental to the company's performance in Australia, where health warnings have been common for many years.

Required:

a. Who are major stake holders in the debate on the health warnings on cigarette packs?

b. What are the main ethical issues involved in the debate?

c. If you were Randell Hedges what would you do?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91606109

Have any Question?


Related Questions in Accounting Basics

Assignment - fraud prevention and detection planyou went

Assignment - Fraud Prevention and Detection Plan You went back to your corporate controllership position with Dingwow Inc. Senior Management has assigned you as the team lead to develop a fraud prevention and detection p ...

Question - susan a single taxpayer owns and operates a

Question - Susan, a single taxpayer, owns and operates a bakery as a sole proprietorship. The business is not a specified services business. In 2018, the business pays $100,000 in W-2 wages, holds $150,000 of qualified p ...

Question - cullumber company purchased machinery for 176400

Question - Cullumber Company purchased machinery for $176,400 on January 1, 2017. It is estimated that the machinery will have a useful life of 20 years, salvage value of $14,700, production of 88,600 units, and working ...

Question - klm ltd purchased new equipment on 1st january

Question - KLM Ltd purchased new equipment on 1st January 2010, at a cost of $420 000 net of GST. The company estimated that the equipment had a useful life of 5 years and a residual value of $45 000. Required - Assuming ...

Question revenue from contracts with customers

Question: Revenue From Contracts With Customers Examples Part I: For each of the scenarios determine if a contract exists by applying the 5 requirements for a contract to exist under ASC 606. 1. For each of the following ...

Assignment -discuss accountant and or auditors

Assignment - Discuss 'Accountant and /or auditor's responsibilities and contributions towards corporate governance'. Summary - Identify Common and different themes for 4 articles Managerial Implications for 4 articles Li ...

Question - the adjusted trial balance of cheyenne company

Question - The adjusted trial balance of Cheyenne Company shows the following data pertaining to sales at the end of its fiscal year, October 31, 2017: Sales Revenue $752,300, Delivery Expense $13,020, Sales Returns and ...

Question - kiddie world uses a periodic inventory system

Question - Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available for the quarter ending September 30, 2018:   ...

Question - canberry corporation had net income of 116000

Question - Canberry Corporation had net income of $116,000, beginning total assets of $856,000 and ending total assets of $760,000. Calculate its return on total assets? 738% 15.3% 655% 14.4% 13.6%

Question - on january 4 2017 ivanhoe company leased a

Question - On January 4, 2017, Ivanhoe Company leased a building to Vaughn Manufacturing for a ten-year term at an annual rental of $185000. At inception of the lease, Ivanhoe received $740000 covering the first two year ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As