Question

Chad is the CFO of Boho Chic, Inc. The company currently has an investments portfolio that includes a variety of both debt and equity securities. Chad’s bonus is based on whether Boho meets certain earnings projections. How can Chad take advantage of the classification of investment securities to improve his chances of receiving his bonus? Discuss the ethical and legal implications. Respond to two or more of your classmates’ postings in any of the following ways: Build on something your classmate said. Explain why and how you see things differently. Ask a probing or clarifying question. Share an insight. Offer and support an opinion. Expand on your classmates’ postings. Support your ideas with research from our course sources and/or outside, scholarly sources using the CSU-Global Guide to Writing and APA . The CSU-Global Library is a good place to find these sources. Post your initial response by Thursday at 11:59 p.m. MT of this week, and check back often to continue the discussion. Be sure to respond to two of your peers’ posts as well by Sunday at 11:59 p.m. MT of this week. Refer to the discussion grading rubric for more information on expectations of class discussions.

Answer 1

Since Chad is the CFO of boho Inc he is incharge of all financial statements results early then any other investor in the market. So he can buy or share his equity shares in boho Inc if he has any part in his portfolio.

Also Chad's bonus is linked to performance of boho earnings. So Chad might attempt to inflate earnings by accounting manipulations and thus resulting in more chances of getting the bonus.

If he does any of the above act he is going south in ethically and legally moral compass.