Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Basic Finance Expert

Hypothetical and Ethical Dilemma

Timothy Ackers is a "stay-at-home dad" living in Falling Waters subdivision in Olympia, Washington. Timothy's wife Julia earns a six-figure income at the largest accounting firm in Olympia, and both husband and wife feel fortunate that one of them is able to stay at home with their two young children, four-year-old Hope and two-year-old Matthew.

Timothy is part of the community watch organization in his subdivision, and as a stay-at-home parent, he has ample opportunity to observe the daily neighborhood "goings-on." For the past six months, Timothy has noticed heightened activity at the house down the street owed by the Penningtons (Clara and Jonathan;) approximately eight to twelve cars come and go from the Pennington driveway every day, and four months ago, handicapped access ramps were installed at the front and back entrances to the home. On several occasions, Timothy has seen elderly people sitting in wheelchairs in the Penningtons' front yard.

Curious, Timothy knocks on the front door of the Pennington home one Monday morning. Clara Pennington answers. Ackers states "Good morning, Clara. I know the old saying that ‘curiosity killed the cat,' but I can't help myself. What's going on at your house? Why are all the elderly people here? I though both of your parents were deceased, and I thought Jonathan's parents had ‘passed on' as well. Are these people related to you?"

Clara responds: "Timothy, Jonathan and I decided six months ago to open up an elderly care facility. We didn't have the money to purchase a separate building, so we decided to care for the elderly in our home. This gives me a wonderful opportunity to stay at home, and I wouldn't be able to do that just on Jonathan's income. Plus, think of the advantages for our clients. Isn't this so much better than a regular rest home? These folks have cried tears of joy, and they thank me every day for providing them the quality of care they had hoped for in their ‘golden years.'"

Falling Waters subdivision is zoned exclusively residential. Should Timothy report the Penningtons' zoning violation? What ethical issues are involved in Timothy's decision?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M9881625

Have any Question?


Related Questions in Basic Finance

Interest payments are tax deductible and thus it is in the

Interest payments are tax deductible and thus it is in the interests of the shareholders that the company's management implements a capital structure that uses considerable financial leverage.' Do you agree with this sta ...

Youre prepared to make monthly payments of 210 beginning at

You're prepared to make monthly payments of $210, beginning at the end of this month, into an account that pays 6.2 percent interest compounded monthly. How many payments will you have made when your account balance reac ...

You are planning to make annual deposits of 4440 into a

You are planning to make annual deposits of $4,440 into a retirement account that pays 9 percent interest compounded monthly. How large will your account balance be in 32 years?  (Do not round intermediate calculations a ...

Company has been growing at a rate of 10 per year and you

Company has been growing at a rate of 10% per year, and you expect this growth rate in earnings and dividends to continue for another 3 years. If the discount rate is 25% and the steady growth rate after 3 years is 2%, w ...

Suppose that a mutual fund that tracks the sampp has mean

Suppose that a mutual fund that tracks the S&P has mean E(Rm) = 16% and standard deviation σm = 10%, and suppose that the T-bill rate Rf = 8%. Answer the following questions: (a) What is the expected return and standard ...

Your goal is to save 1000000 at retirement in 5 years you

Your goal is to save $1,000,000 at retirement in 5 years. You expect you can earn 12.50% over the next 5 years. How much money do you have to save on an annual basis to reach your goal?

Assignment -background - youre a group of investment

Assignment - BACKGROUND - You're a group of investment analysts who work for a large investment consulting firm based in Australia. There's one big institutional investor from overseas that is interested in investing in ...

In 1980 the dow jones industrial average stood at 891 in

In 1980 the Dow Jones Industrial Average stood at 891. In the year 2017, the Dow Jones was 22,387. What was the annual return over this period?

Question - discuss the concerns related to valuing a firm

Question - Discuss the concerns related to valuing a firm that deals in multiple currencies. A substantial initial response consisting of a minimum of 100 words, using proper grammar, spelling, and punctuation, as well a ...

Question - your chief financial officer cfo was unable to

Question - Your chief financial officer (CFO) was unable to attend the recent monthly chamber of commerce meeting. You learned from some other local CFOs that changing exchange rates had dramatically affected their firms ...

  • 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