If a BUSINESS action is legal is it necessarily ethical Rela

If a BUSINESS action is legal. is it necessarily ethical? Relate your answer to ACCOUNTING or BUSINESS circumstances only and explain your position.

Solution

A business action can be legal but not ethical. For example, a company produces a product which costs to company $1 but the company uses the value-based pricing and price the product at $10. Though it is perfectly legal to price the product at $10 which costs $1 only to the company, it is unethical to charge the customers 10 time the actual cost of the product.

Hence business action can be legal but it may not be ethical.