Problem: What are the ethical issues raised by the following actions?
General Hospital is subject to a constraint in its short-term borrowing agreement with its bank. General Hospitals must have a year-end current ratio that is greater than 1.5. On December 30 of the current year, it projects that its current ratio will be only 1.4 as of the close of business on December 31. General Hospital has a long-term loan outstanding to its chief executive officer (CEO) that is not due for ten more years. The CEO writes a check on December 30 payable to the General Hospital in an amount such that the current ratio on December 31 will be 1.65. General Hospital renews the loan to the CEO on January 5 of the next year.