By this point in the semester, you have a pretty good idea of what drives a company's net income. You've also read about ethics in business and what kinds of conditions are typically present in fraud situations (opportunity, justification, and pressure).
In your introductions, several of you indicated career goals around business ownership. Well, let's say that you own a small restaurant. The restaurant business is very competitive because diners have a variety of choices. Therefore, you must be very careful to manage costs without sacrificing quality in order to generate a profit. Recently, one of your key food suppliers announced a large price increase across the board. You are reluctant to switch suppliers because you feel the quality of your meals would suffer. You are also reluctant to increase your menu prices because you feel that might result in decreased business. However, one area where you could cut costs is associated with your kitchen staff. You could hire kitchen employees who are not legally authorized to work in the U.S. Because these potential employees have not followed the appropriate legal process, they are willing to work for lower wages. You also know that these employees would feel fortunate to have a job and would be very hard workers who didn't mind long hours. You know that some of your competitors have already hired employees illegally, but nothing has happened as a result. If you were to do likewise, you could cut your expenses significantly while holding your menu prices constant. Your customers would be able to enjoy the same quality meals at reasonable prices.
This restaurant provides the only source of income for you and your family. It's been in your family for over 50 years. Your parents started the restaurant and you took it over 15 years ago when your dad's health started to decline. The profits from the restaurant not only provide an income for you and your family but they also provide retirement income for your parents. Your dad's health has caused him to be in and out of the hospital several times over the past few years and insurance has not always paid for all the related expenses. Therefore, it's important to both your family and your parents that the restaurant continues to do well.
Would you decide to hire employees who were not legally authorized to work in the U.S.? If your decision was challenged by the local news team, what would you say in your defense? How did the knowledge that you've gained in the course so far play into your decision? Do you think this might be a real situation that you might encounter or it might be similar to a real situation that you might encounter?
In order to earn the maximum points, you must address all the questions posed here (2 points per question), using proper grammar. You will lose a half point for each grammar error.