Imagine you are CEO of a multinational company supplying infant care products to emerging economies. Do you and your company have a duty to go beyond legal requirements and conform to the ethical norms of the societies in which it operates?
What will be an ideal response?
Any company does have a duty to go beyond legal requirements and conform to the ethical norms of the societies in which it operates. A broader understanding of the ethical norms is important to understand rights and wrongs in letter and spirit. Legal regulations dictate only requirements that make actions lawful, while ethical norms dwell deeper into the complexities of morality that are not always black and white like the laws. While most company managers are careful to ensure that a company's strategy is within the bounds of what is legal, evidence indicates they are not always so careful to ensure that all elements of their strategies and operating activities are within the bounds of what is considered ethical. The consequences of crafting strategies that cannot pass the test of moral scrutiny are manifested in sizable fines, devastating public relations hits, sharp drops in stock prices that cost shareholders billions of dollars, criminal indictments, and convictions of company executives.
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Which of the following is NOT an example of dynamic capabilities?
a. State-of-the-art machinery b. Customer and business relationships c. Reputation d. Organizational culture and values
According to the basic capital structure theory proposed by Modigliani and Miller (MM), when will a firm's value be maximum??
A. ?When it is financed entirely through equity B. ?When it is financed 50 percent through debt and 50 percent through equity C. ?When it is financed entirely through its retained earnings D. ?When it is financed 100% through debt E. ?When it is financed 50 percent through equity and 50 percent through its profits
Althea Caldwell is the director of Arizona's Department of Health Services (DHS). DHS is charged the administration of the state's behavioral health system and is responsible for contracting with private providers for millions of dollars of mental
health care each year for eligible patients. Ms. Caldwell accepted a $20,000 per year director position for a hospital group corporation. One of the hospitals in the group was one to which state contracts for mental health treatment had been awarded. One month after accepting the position, Ms. Caldwell asked the state's attorney general for an opinion as to whether she had a conflict of interest. Does Ms. Caldwell have a conflict of interest?
Details of the manufacturing activity in Amy Corporation's Assembly Department for the month of December is given below: Number of UnitsLabor and Overhead Percent CompleteWork in process inventory, Dec. 110,00070%Started in assembly during the month80,000 Work in process inventory, Dec. 3115,00040% All materials are added at the beginning of processing in the Assembly Department. The equivalent units for labor and overhead for the month, using the weighted-average method, is:
A. 80,000 B. 162,000 C. 81,000 D. 74,000