Arthur Baxter, a manager in records retention for SWC Company, has ordered seven laptop computers for...

Arthur Baxter, a manager in records retention for SWC Company, has ordered seven laptop computers for his department, even though he only has five employees. In addition to each laptop, he ordered extra copies of several software programs. When the equipment arrives, Baxter sends one of the extra laptops to his son who is a freshman at Eastern University and sells three of the original software packages to friends. What offenses could Baxter be charged with and why?

Solutions

Expert Solution

Arthur Baxter has violated the moral code of conduct by utilizing the company's assets for personal use. He could be charged with the following offenses :

Larceny:

Baxter has ordered laptops and then sent one of them to his son and the extra software packages to his friends. He has taken away the company's property with no intention of returning it. Thus, he can be charged with larceny.

Embezzlement:

Embezzlement is the act of withholding acts till the time they can be converted or stolen. Since the company only has 5 employees, and he has ordered 7 laptops one of which he has sent to his son, there is still a surplus of one laptop and several software packages which Baxter clearly intends to convert for personal use.

Conversion:

Fraudulent conversion occurs when a company's property is fraudulently used for one's own use. Since Baxter has given the laptops and software packages to his son and his friends, he can be charged with conversion.

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Compucat is a Canadian manufacturing company that produces inexpensive personal and laptop computers. The company has...

Compucat is a Canadian manufacturing company that produces inexpensive personal and laptop computers. The company has been generating progressively more of its sales from foreign markets. During 2016, the company started purchasing most of its components from a supplier in Germany. To deal with the uncertainty associated with foreign exchange fluctuations, all of Compucat's foreign currency denominated receivables and payables are hedged with contracts with the company's bank. Compucat's year-end is on December 31. The following transactions took place in...

2. A computer hardware firm sells both laptop computers andprinters. It has a large inventory...

2. A computer hardware firm sells both laptop computers and printers. It has a large inventory of laptops and printers that it wants to sell, so it has no variableproduction cost. Through the magic of focus groups, their pricing team determines that they have an equal number of three types of customers, and that these customers’ reservation prices are shown in the table:LaptopPrinterBundleCustomer A$800$100$900Customer B$1000$50$1050Customer C$600$150$750a. If the firm were to charge only individual prices (not use the bundle price),...

A computer manufacturer produces three types of computers: laptop, desktop, and tablet The manufacturer has designed...

A computer manufacturer produces three types of computers: laptop, desktop, and tablet The manufacturer has designed their supply chain in such a way so that the final assembly of their computers entails putting together different quantities of the same parts. We will assume that the costs for parts unique to the model have already been accounted for in the reported per-unit profits, and that inventory levels for these other parts do not change the optimal allocation. We assume that there...

Paragraph (۲۰): The manager of one of the companies has ordered the accountant to amend the...

Paragraph (۲۰): The manager of one of the companies has ordered the accountant to amend the financial statements numbers in order to maximize the profitability of the company at the end of the period in order to benefit from the opportunity to obtain financing from one of the banks. The accountant has executed the order, in your opinion, this case conflicts with any of the methods below when building Theory of accounting? 1 / economic 2 / behavioral 3 /...

A manufacture of laptop computers has four models, two with color lcd (liquid crystal display) screens...

A manufacture of laptop computers has four models, two with color lcd (liquid crystal display) screens (the spot model and the superba model) and two model with black and white lcd screens ( the standard model and the excel model). each model required assembly and test time and the requirements are shown in the table 2, together with the amount of time available for assembly and testing next month. LCD. the lcd screens are purchased from and outside supplier and,...

ABC company is producing printed circuit boards (PCBs) used in laptop computers. The associated manufacturing process...

ABC company is producing printed circuit boards (PCBs) used in laptop computers. The associated manufacturing process which is in 3s-control seems to fluctuate in quality recently. The following table presents the number of nonconformities observed in 26 successive samples of 100 PCBs over time. One nonconformity represents one defect on a PCB. But one PCB may have more than one nonconformity. Sample number Number of conformities Sample Number Number of conformities 1 21 14 19 2 24 15 10...

Suppose a computer company sells service plans for their laptop computers. Each service plan costs $250...

Suppose a computer company sells service plans for their laptop computers. Each service plan costs $250 and lasts for three years. The service plan covers any genuine hardware malfunctions during the warranty period but will only allow for up to one claim. Suppose that the average cost of repair is $850. Suppose also that the likelihood of a warranty claim is 22%. Let x denote the discrete random variable that represents the amounts the company (i) makes from a service...

QUESTION 1 Garrett has been an employee of Construction Company for seven years. His manager notices...

QUESTION 1 Garrett has been an employee of Construction Company for seven years. His manager notices that he has been working late making sure that the shop equipment is properly stored and locked up at the end of each workday. The manager tells Garrett that he has appreciated his hard work, that Garrett should not feel obligated to stay late to lock up the equipment anymore, and that Garrett can expect a $250 bonus in his next paycheck because of...

Due to erratic sales of its sole product—a high-capacity battery for laptop computers—PEM, Inc., has been...

Due to erratic sales of its sole product—a high-capacity battery for laptop computers—PEM, Inc., has been experiencing financial difficulty for some time. The company’s contribution format income statement for the most recent month is given below: Sales (12,800 units × $30 per unit) $ 384,000 Variable expenses 192,000 Contribution margin 192,000 Fixed expenses 214,500 Net operating loss $ (22,500 ) Required: 1. Compute the company’s CM ratio and its break-even point in unit sales and dollar sales. 2. The...

Due to erratic sales of its sole product—a high-capacity battery for laptop computers—PEM, Inc., has been...

Due to erratic sales of its sole product—a high-capacity battery for laptop computers—PEM, Inc., has been experiencing financial difficulty for some time. The company’s contribution format income statement for the most recent month is given below: Sales (13,100 units × $30 per unit) $ 393,000 Variable expenses 196,500 Contribution margin 196,500 Fixed expenses 219,000 Net operating loss $ (22,500 ) Required: 1. Compute the company’s CM ratio and its break-even point in unit sales and dollar sales. 2. The president...

Subjects