TIF 11 Ethics in Action Marco Brolo is one of three partners

TIF 1-1 Ethics in Action Marco Brolo is one of three partners who own and operate Silkroad Partners, a global import- THE export business. Marco is the partner in charge of recording partnership transactions in the accounts. On his way to work one day, Marco\'s car broke down. At the repair shop, Marco learned that his car\'s engine had significant damage, and it will cost over $2,000 to repair the damage. He does not have enough money in his hank account to cover the cost of the repair, and his credit cards are at their limit. This car is the only form of transportation that Marco has to get to and from work every day. He does not use his car for any business travel After considering his options, Marco decidles to take $2,000 from the partnership for the repair, and record it as an expense of the partnership. He believes that this is appropriate since he needs his car to get to work every day. 1- Is Marco hehaving ethically? Why? 2.--_ Who is affected by Marco\'s decision? 3. What other alternatives might Marco consider?

Solution

1) No, Marco is not behaving ethically. Paying for car expense which is for his own purpose of commuting cannot be recorded as an expense of the partnership.

2) Due to this, his two partners will be impacted along with other stakeholders of the company as the expense will be increased by 2000$ unnecessarily. It will impact the balance sheet, profit & loss statement

3) The other alternatives are:

But, at no point, he should take out money from partnership