Question

Steven owns a bicycle shop. Once a week he and a group of friends rent the gym of the local Boys and Girls Club to play basketball. Steven collects cash from the group and writes a check to the Club on his business account. He then deducts the payment as a business expense. Comment on the ethics exhibited by Steven and the possible outcomes of his actions.

Answer 1

Steven in the given cases not ethical towards his business as he is showing such expenses in his business account which are not even the expenses of the business. He have been spending such an amount which does not even relates to the business in any form.
Business Ethics have not been followed by Steven.

Possible outcome of his action could be decrease in the net profits on the business, which would result in lowering the market image of his bicycle business. Also Stephen haven't been ethical towards his own business, this would lead investors resistance investing in his business.

If his business is at a larger scale then, there would be to decrease in market prices of his business shares.