Accounting and Finance Foundations

Unit 1

Accounting and Finance Foundations Unit 1: Accounting Careers 59

Accounting Careers

Chapter 3

Are Your Actions Legal?

In a perfect world, everyone would know to do the right thing. In the real world, however, governments

have been forced to create complex systems of laws to force individuals to adhere to the social norm of

right and wrong. We rely on these laws for our protection as well as the orderly operation of our society.

The following concepts are common knowledge for individuals working in business:

n    Employers may not discriminate on the basis of national origin.

n    Different customers may not be charged different prices for the same item.

n    Taxes must be paid to the government.

However, it is not always so obvious to determine when an action is legal. Did you know:

n    It can be illegal to sell certain items such as computers and oil to countries that violate global

norms of conduct.

n    An interviewer may not ask a prospective employee if he or she has children.

n    Companies with more than $10 million in assets having more than 500 owners must file annual and

other periodic reports with the government.

No one can be expected to know every law that might affect the operation of a business. To assist its

managers, businesses hire lawyers to provide legal advice. Most large businesses staff their own lawyers.

Small businesses typically use an independent lawyer to provide legal advice when needed. Managers

should always be encouraged to consult the lawyers if there is any question about whether an action might

be illegal.

Student Guide