Fred King runs a small bookstore coffee shop. His newest employee has

QUESTION

Fred King runs a small bookstore coffee shop. His newest employee has recommended a new, lower-cost vendor for the store’s coffee supplies.

However, the store would have to pay this vendor in cash, and the vendor cannot guarantee the brands or flavors of coffee from month to month. Fred immediately feels uncomfortable with the deal and says he’ll pass. Fred is exhibiting good ethical judgment.
Indicate whether the statement is true or false.

ANSWER

Answer: TRUE
Explanation: At times, an alternative will seem too good to be true. An ethical manager will question unusual business practices. A request for payment in cash, for example, could be an attempt by the vendor to bypass paying sales tax.