MAA262 – Management Accounting Assessment Task 1

Question 1

One of your high school classmates who poses himself as an entrepreneur and recently got the investment from a venture capital. He runs a small manufacturing firm and wants to expand his business into the bedroom furniture. He has offered you a one chance in a lifetime of becoming his partner in this new incredible business. The entrepreneur has offered you a partnership in this venture under the condition you share with him the Sleep Well Inc.’s customers contact list. The entrepreneur has guaranteed you a commission for any Sleep Well Inc. customer who buys his new beds.

Required

State the ethical standard, as provided by the Institute of Management Accountants (IMA) Statement of Ethical
Professional Practice1, which is being jeopardized and justify why the standard is being jeopardized, if you accept the offer. Please elaborate on how the business offer could be accepted without jeopardizing any ethical standard. (Chapter 1, 10 marks)