What is the ethical issue in this situation?State why you approve of disapprove of Heart’s management.?
what is the ethical issue in this situation?State why you approve of disapprove of Heart’s management of Care Bear’ funds.
Care Bears, a charitable organization in Manila, has a standing agreement with Barbie State Bank. The agreement allows Care Bears to overdraw its cash balance at the bank when donations are running low. In the past, Care Bears managed funds wisely and rarely used this privilege. Lion Heart has recently become the president of Care Bears. To expand operations, Heart acquired office equipment and spent large amounts of fundraising. During Heart’s presidency, Care Bear has maintained a negative bank balance approximately P6,000
You need to provide more information, did Care Bears become more “profitable” (I mean does it generate more charity)?
Basicly Heart has increased leverage. T
However, in general there are cheaper ways to obtain leverage than using overdraw on a bank account, in particular when it’s to finance office equipment.
