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CMA Intermediate · Business Laws and Ethics · Business Ethics and Emotional Intelligence

Meera, a cost accountant at a Pune manufacturing firm, finds that her manager has asked her to record a personal family trip as a business expense. She wants to do the right thing but also fears losing her job. Which description best fits her situation?

It is an ethical dilemma. Meera faces a conflict between acting honestly by refusing to record a personal expense as a business cost and protecting her job, so moral judgment is required rather than a purely technical accounting solution.

  1. AAn ethical dilemma, because she must choose between honesty and personal job securityCorrect
  2. BA routine technical accounting problem with a single prescribed solution
  3. CA legal formality that needs no ethical judgment
  4. DA situation of emotional intelligence failure on the part of the manager only

Explanation

An ethical dilemma arises when a person must choose between two or more courses of action that conflict with values or interests. Meera must weigh integrity against job security. It is not a purely technical problem, since the right action involves moral judgment.

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