BAM521 – BUSINESS LAW
(H) Managers and the Legal Environment Strategies for Business
Constance E. Bagley, 2019
Writing Assignment 1
Adam Casey is the owner of a small Internet company. He is planning a public offering in 12 months. Casey asks his accountant to prepare an optimistic business model that shows a greater profitability potential than a conservative estimate would produce. When the accountant questions Casey’s profitability assumptions, Casey reminds the accountant of the 10,000 shares of the company stock the accountant was able to purchase at a low price. A public offering would dramatically increase the value of those shares. Examine the ethical issues faced by the owner and the accountant. How should they be resolved?