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In: Accounting

Jay Simons, the accountant of See Co., woud like to buy a new software package for...

Jay Simons, the accountant of See Co., woud like to buy a new software package for his general ledger. He couldn't do it because all funds were frozen for the rest of the fiscal period. Jay called his friend at Joor Industries and asked whether he could copy its software. Comment on why it is or is not okay for Jay to make such a request.

Solutions

Expert Solution

It is not okay for Jay Simons to make such a request.

Explanation:

We should know that a software package is an intangible asset for the company because a company takes a license to use the software which is intangible.

In the given case, Jay Simons wanted to purchase a new software package for his general ledger and he was unable to purchase it as all funds were frozen for the rest of the fiscal period. In this case, the options he can choose include:

  • Buying the software from the purchaser on credit or through installments.
  • Explain the management of the need to get the software and ask to provide funds.

Instead, Jay Simons asked his friend if he could copy his company's software which is not just an infringement of the company's privacy policy but is completely unethical.

Joor Industries has a license of its own to use the software and it has all its confidential data stored in it. A company's information is very much sensitive and confidential and cannot be shared with anyone including its competitors.

Hence it can be concluded that Joy's request was unethical and should not be accepted.

Thanks & all the best....

ekkarill92 answered 1 year ago
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