B) What are the ethical issues involved in this situation? Some of the ethical issues in this case are to be honest and have integrity on how they go about the situation. They need to make sure that whatever decision is made it has to be fair and the best choice for the company. They need to make sure to not take side roads and lie about what the choice is about the advertising. Some of the other ethical issues that they are facing are decision making and compliance and governance issues. They have different ideas and the company needs to make sure that they follow the rules and comply with what the highest leader says to do, which would be what the choice of the President is.
C) What would you do if you were Wayne Terrago? I would go along with the President and report as inventory. Because I do not think that it should be put into the production part or as a prepaid advertising. The advertising is usually its own part of the process for the whole company not just one specific product. This would also help the company get the bond and help the financial difficulties. By having it go further the company can make up the money from the products that the advertising was for. Also because the two other ideas from the VP and Terrago were not approved by others.