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CASE – PHILLIP ANDERSON

Questions:

1. Which investment alternative:

a. Provides the highest returns to the client?

b. Provides the highest profits to Stuart & Co.?

2. If your answer to (b) is not the same as your answer to (a) and Philip recommends the highest profit
choice, is he acting unethically? Why or why not?

3. Which alternative should the top management of Stuart & Co. want Philip to recommend to his
client? Is the company’s control system designed to ensure that choice?