Discussion

1. What are the ethical issues related to Barbara Brockman's idea?

The ethical issue related to Barbara Brockman's idea here is should one honestly and fairly states the financial statement or one mislead the financial statement in order to get some benefit for the company.

2. What would you tell Barbara Brockman?

Although Barbara Brockman's idea might give us a chance to get the loans from the bank, I, as the chief account for Brockman Guitar, still would reject her proposal. I would tell her that it is time to let us do what the bank need us to do, honestly and fairly prepare all the statements they require us to do. With the correct information, the bank might find the real problem of our company. Our company manufactures top-quality steel string folk guitars, and it is a good company. We need figure out why we were experiencing capital problems. It is time to let us really know where did we allocate the money in the company. Trying to hide the problem and borrow more money will lead us to worse situation. In case that we invest those borrowed money to the wrong direction because we are not clear where had we done wrong in the first place. It is time to face the problem and we will figure one way out together if we believe our company provide good products.