Explain how society at large can be hurt by companies using unethical financial and management practices

What will be an ideal response?


The fallout from the demise of WorldCom and Enron demonstrates how society at large can be hurt by unethical practices of a company. Everyone suffers from these unethical practices. Thousands of people lose their jobs and their retirement savings. Stakeholders such as stockholders lose their investments. Consumers end up paying for worthless merchandise or services.

Business

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Financial leverage

a. may increase the return to the common shareholders. b. uses lower cost borrowed funds and earns a higher rate of return on those funds than their cost. c. requires the common shareholders to take on more risk in their investment. d. all of the above e. none of the above

Business

CRP systems, like MRP systems, are most useful for ______.

A. job-shop or batch production processes B. continuous production processes C. production of a single product D. service operations

Business

The states and the federal government provide for the registration of trademarks

a. True b. False Indicate whether the statement is true or false

Business

ABC’s investment managers buy an assortment of stocks and bonds or other investments and then repackage them into different products investors may wish to purchase. The company then sells shares of their ________ to interested investors.

A. pari-mutuals B. stock syndicates C. qualified bond plans D. mutual funds

Business