Assignment On Principles Of Commerce

Running head: PRINCIPLES OF COMMERCE
PRINCIPLES OF COMMERCE
Name of Student
Name of University
Author’s Note

PRINCIPLES OF COMMERCE
1
Table of Contents
QUESTION 1:.....................................................................................................................2
QUESTION 2:.....................................................................................................................2
QUESTION 3:.....................................................................................................................3
QUESTION 4:.....................................................................................................................3
QUESTION 5:.....................................................................................................................4
REFERENCES:...................................................................................................................5

PRINCIPLES OF COMMERCE
2
QUESTION 1:
Bribery in any field is considered as the unethical practices. As per law of any country,
both providing of bribery and accepting the bribery is considered as crime. In accounting world
this practice is also considered as an unethical practice. As per the case study, Director of the
company was forced to pay the bribery of $300 to the government agency. The payment of this
amount in most cases can be considered as an unethical practice.
In order to justify the payment of $300 as ethical practices the director should not
forecasts the amount in the financial statements of the company. The transactions can be shown
either as gift or as a personnel expense. In this way director can eradicate any issues that may
arise due to the bribery and can safeguard the company’s reputation (Guerci et al 2015). Director
can also instruct the finance manager to represent the amount in the balance sheet as the reserve
amount. This will also assist the company to safeguard their goodwill.
QUESTION 2:
If director wishes to not pay the bribery of $300 and decides to wind up the operations of
the business then director can safeguard the company from many problems. By not paying bribe
the director could have save the company from any upcoming lawsuit. The bribery in any
country, irrespective of its background and common ways of operations is considered as
unethical practice. If any government officials file a case against the company then the
organizations could come under the eye of law. This would have tarnished the reputation of the
company and the operations of the business may also get hampered. Goodwill of the company is
considered as one of the most important criteria that assist any organizations to operate their
business. Using unethical practice may affect the goodwill of the company (Perry, Wood and