Question

In: Operations Management

You are the proprietor of a fledging computer graphics company in Shanghai, China. The sophisticated business...

  1. You are the proprietor of a fledging computer graphics company in Shanghai, China. The sophisticated business application software you need for your business normally sells for 2,900 renminbi (around $350) at computer stores in Shanghai and online. But with an income of just little more than $5,000 a year, you cannot afford to buy the original graphics software for your business. An associate has told you she can get you all the software you need, and more, for only $30. Yet, you have financially strapped friends who code software for the global software companies that make the very programs you need.
  1. Do your personal circumstances make it ethical for you to purchase the pirated software?
  2. What would you do if you were told about a new government effort to actively punish users of pirated software?
  3. Does a software company bear any responsibility for subcontracting work to low-wage markets where its finished product is unaffordable for the same coders who worked on it?

Solutions

Expert Solution

(a)

Purchasing pirated software is unethical as well as illegal. Being a business owner I am responsible for the growth of the company, but growing the company by cheating myself and the government is wrong. So I will be engaged in any activity that is unethical and has negative impact on the business and reputation in market.

(b)

The government has already established laws to punish the users of pirated software. At an individual level, I would ask my associate to stay away from the people who sell pirated software and not to provide such unethical or illegal suggestions. Moreover, I would warn her politely that if she contacts such people, she will be terminated on immediate effect.

(c)

The company should provide the software to the coders who work on it with an access key on trial basis of one year. The reason is that if a worker distributes the software in his/her group, the company will have to face losses. The losses will have impact on the wages of workers. Moreover, It is the right and responsibility of the company to protect its intelectual property.  People in low-wage market will use that and the company will not be able to realize the real value of the product.


Related Solutions

You are the proprietor of a fledgling computer graphics company in Shanghai, China. The sophisticated business...
You are the proprietor of a fledgling computer graphics company in Shanghai, China. The sophisticated business application software you need for your business normally sells for 2,900 renminbi (around $350) at computer stores in Shanghai and online. But with an income of just a little more than $5,000 a year, you cannot afford to buy the original graphics software for your business. An associate has told you she can get you all the software you need, and more, for only...
Q. Baoshan Energy Ltd. in Shanghai, China, has a tank lorry that costed the company ¥300,000...
Q. Baoshan Energy Ltd. in Shanghai, China, has a tank lorry that costed the company ¥300,000 when it was purchased on January 1, 2016. The vehicle has an estimated useful life of 10 years and no residual value. Baoshan uses straight-line method of depreciation on equipment. Baoshan decides to dispose the tank lorry and sells it to Pudong Oil & Gas Co. on August 31, 2020. (Currency in Chinese yuan, ¥) Instructions: A. What journal and T-account entries would Baoshan...
Computer Graphics (CG) is a small manufacturer of electronic products for computers with graphics capabilities. The...
Computer Graphics (CG) is a small manufacturer of electronic products for computers with graphics capabilities. The company has succeeded by being very innovative in product design. As a spin-off of a large electronics manufacturer (ElecTech), CG management has extensive experience in both marketing and manufacturing in the electronics industry. A long list of equity investors is betting that the firm will really take off because of the growth of specialized graphics software and the increased demand for computers with enhanced...
whats the market size of electricity market in china. also if there are some graphics for...
whats the market size of electricity market in china. also if there are some graphics for its market share thank you
Watch Me Flex (WMF) Watch Me Flex (WMF) is a watch retailer based in Shanghai, China....
Watch Me Flex (WMF) Watch Me Flex (WMF) is a watch retailer based in Shanghai, China. It operates as a partnership between three owners, Eric, Nicolas, and Alvin. It specializes in the distribution of luxury branded watches, such as Rolex, Patek Phillipe, and Audemars Piguet. Due to the falling economic growth in China, WMF has been facing declining sales revenue during the past year. Further, with the crackdown of corruption, The State Administration of Taxation is reviewing many businesses. To...
Frank is the sole proprietor of a small business.  In 2019, the business income for purposes of...
Frank is the sole proprietor of a small business.  In 2019, the business income for purposes of computing the Section 179 deduction is $350,000.  During the year, the following assets were placed in service.  (Assume no bonus depreciation) Asset # 1 – Machinery  - $1,790,000 Asset # 2 – Equipment - $365,000 Asset # 3 – Computer - $96,000 Asset # 4 – Equipment - $468,000 3a) Calculate the amount of the phase out limitation? 3b) What is the maximum amount of Section 179...
Gilbert is the proprietor of a small business. In 2017, the business income, before consideration of...
Gilbert is the proprietor of a small business. In 2017, the business income, before consideration of any cost recovery or § 179 deduction, is $3,000,000. Gilbert spends $2,500,000 on new seven-year class assets (use half year convention), and elects to take the § 179 deduction on them. He elects not to take additional first-year depreciation. Gilbert's cost recovery deduction for 2017, for 5-year asset purchases, is $780,000. If an amount is zero, enter "0". If required, round your intermediate computations...
Subject Code: Computer Graphics 3) Translate point (2,3) by (5,-2)
Subject Code: Computer Graphics 3) Translate point (2,3) by (5,-2)
Jonathan operates a business as a sole proprietor. His business is a lawn service and landscaping...
Jonathan operates a business as a sole proprietor. His business is a lawn service and landscaping business. In July 2018, Jonathan purchased two new lawn mowers at a cost of $6,000 each. He also purchased a new warehouse to store all the equipment in. The warehouse cost $200,000 and he purchased it in August 2018 In 2020, Jonathan had the following items of income and deduction: $70,000 of income form lawn service $20,000 in expenses related to his business Sale...
Jonathan operates a business as a sole proprietor. His business is a lawn service and landscaping...
Jonathan operates a business as a sole proprietor. His business is a lawn service and landscaping business. In July 2018, Jonathan purchased two new lawn mowers at a cost of $6,000 each. He also purchased a new warehouse to store all of the equipment in. The warehouse cost $200,000 and he purchased it in August 2018 In 2020, Jonathan had the following items of income and deduction: $70,000 of income form lawn service $20,000 in expenses related to his business...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT