Ethical and professional behaviour pt2

Question 1

Challenges posed by ethical behaviour

Answer 1

-Unfair advertising
-Pricing goods in rural areas
-Tax evasion

Question 2

Dealing with unfair advertising

Answer 2

-Businesses must be encouraged to keep advertising fair and in line with the constitution

-Advertisements should not contain anything discriminatory

-Advertisements should be honest

-Businesses must ensure to not omit key information from advertisements

Question 3

Challenges posed by unfair advertising

Answer 3

-Deceptive advertising can violate the trust of customers and destroy business relationships

-Businesses can make unwise advertising choices when they are under pressure to increase their profits

-Unfair advertisements could negatively affect consumers

-Some advertisements may be regarded as discriminatory because they target some sections of the population

Question 4

Challenges posed by Pricing of goods in rural areas

Answer 4

-Businesses may experience a decline in sales due to high costs added to the prices of the final product

-Some businesses in rural areas exploit their customers by inflating their prices and this could lead to disloyalty from their customers

Question 5

Challenges posed by tax evasion

Answer 5

-Businesses may pay heavy fines for evading tax

-Businesses may not be familiar with the latest changes in tax legislation

-Tax evasion may negatively impact on the business image

-The accountant may be charged high fees for falsifying financial statements

Question 6

Dealing with pricing of goods in rural areas

Answer 6

-A business may lobby with other businesses in the area to convince the government to improve infrastructure in the workplace

-Businesses may charge fair prices for goods and services

-The business must be willing to avoid unethical business practices to attract customer loyalty

-The business must work together with suppliers to share delivery costs to remote rural areas

Question 7

Dealing with tax evasion

Answer 7

-VAT needs to be charged on VAT-able items

-Submit all correct tax returns to SARS on time

-All products should be correctly invoiced and recorded

-Disclose all sources of income tax payment purposes