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Comment on Ethics case 13-14 page 783.
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<!DOCTYPE html PUBLIC "-//ABISOURCE//DTD XHTML plus AWML 2.2//EN" "http://www.abisource.com/2004/xhtml-awml/xhtml-awml.mod"><html xmlns="http://www.w3.org/1999/xhtml" xmlns:awml="http://www.abisource.com/2004/xhtml-awml/"> <head> </head> <body> <div> <span>S&G fastener being a new company specializing in plastic industrial fasteners might produce more number of products with defects due to less economies of experience. XX a result of which there would XX XXXX number of warranty claims XXXX the customers XX S&XXX;X fasteners. The XXXXXXXX estimate XXXX XX Joe XXXXX is XXXXX XXXX. XXXXXXXX estimate of 4% or XXXXX is a XXXXXXXXX estimate and would XXXXX the XXXXXX XXXXXXXX liability. XXXXXXXXX, XXX Craig XXXXXX not XXXXXX XXX XXXX suggestions in XXXXXXXX the warranty XXXXXXXX.</span><span>XXXXXXXX the XXXXXXXX estimate might pose an ethical XXXXXXX. If XXXXX XX a trouble renewing the credit XXXX there XXXXXX’t be much XXXXXXX fo XXXXX available XXX as a result XX which XXXXX would be tightening XX XXXXXX to pay the liabilities. If the XXXXXX line is contracted XXX XXXXXXXXXXX XXXXXX be XXXX with ease there by resulting in poor current ration of the firm.</span><span>If the warranty estimate is XXXXXXX from X% XX sales XX XXX 2% of XXXXX this XXXXXXXXX would enhance less pressure XX the XXXX to allocate XXXX funds towards XXX warranty XXXXXXXXX account XXXXXXXXX but when the actual XXXXXXXX expenditure XXXXX to be greater than the XXXXXXXX estimate XXXX XXX XXXX has XX pay for this XXXXXXXXXXX with new XXXXXX of XXXXX XXXXX will XXXX greater XXXXXXXXXX to the XXXX on a later XXXX</span><span>If XXX warranty estimate XX XXXXXXXX XX X%, XXX firm would initially XXXXXXX pressure XXX difficulty XX allocate funds XXXXX XXX XXXXXXXXX of XXXXXXXXX XXXXXX facility XXXXXXXXX XXX when XXX XXXXXX XXXXXXXX XXXXXXXXXXX XXXXX XX XX lower XXXX the XXXXXXXX estimate XXX XXXX XXXXX XXXX greater liberty as XXXXX XXXXX be a balance XXXXXXXXX at the XXX of XXX warranty XXXXXX.</span><span>XXXXXXX, the XXXX XXXX XXX XXXXXXXXXX XXX XXXXXXXX estimate XXXX X% of sales XX XXXX would XXXX to XXXXXXXXXXX allocation of funds XXXXXXX warranty XXXXXXXXX XXXXXXX thereby XXXXXXX to underutilization XX funds XXX XXXX XXXXX XXXX to exercise of high XXXXXXXX of the XXXX XX allocate greater XXXXX in XXX XXXXXXXXX of XXXXXXXXX XXXXXX facility XXXXXXXXX.</span><span>XX XXX XXXXXXXXXX XX XXXXXX the warranty XXXXXXXX XXXX 4% XX XXXXX XX XXXXXXXX then the XXXX XXXX XXXXXXX XXXXXX pressure initially XX allocate funds towards the warranty XXXXXXXXX account but there XXXXX XX greater pressure the actual warranty expenditure tends to be greater XXXX the XXXXXXXX estimate then the firm XXX to pay XXX this XXXXXXXXXXX XXXX XXX search XX XXXXX which XXXX pose XXXXXXX difficulty XX XXX firm XX a later XXXX.</span> <p awml:style="XXXX XXXXXXXXX"> <span>Hence, reducing XXX XXXXXXXX XXXXXXXX the firm XXXXX XXXXXXXXX XXXXX lesser XXXXXXXX but XX a XXXXX XXXX XXX XXXX XXXXX be affected XXX XXXX XX forced to XXXXXXXXX greater funds under the prevailing XXXXXXXXX XX uncertain credit XXXXXXXX.</span> <a XXXX="XXXXXXX"> </a> </p> </div> </body></html>">
