What functions do strong ethical values serve?
What will be an ideal response?
Strong ethical values have two important functions. First, they form a solid foundation on which a firm can build its vision and mission, and thus lay the groundwork for long-term success. Second, values serve as the guardrails put in place to keep the company on track when pursuing its vision and mission in its quest for competitive advantage.
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Las Palmas Company reported the following items on its financial statements for the year ending December 31, 2016: Sales $ 560,000 Cost of goods sold $400,000 Salary expense 40,000 Interest expense 30,000 Dividends 30,000 Income tax expense 25,000 How much will be reported as retained earnings on Las Palmas' balance sheet at December 31, 2016, if this is the first year of operations?
a. $ 45,000 b. $ 35,000 c. $ 85,000 d. Not enough information is provided.
Referring to the textbook's example of Babe Ruth, Ruth switched from being a pitcher to being an outfielder and batter because of the
a. principle of absolute advantage. b. principle of comparative advantage. c. desire to be a mercantilist. d. concept of economies of scale.
Treasury stock or treasury shares are shares a firm has previously issued and later reacquired. Which of the following is/are not true?
a. Some firms believe that their own shares provide a good investment. b. Evidence supports the notion that share prices often increase after a firm announces a share repurchase program. c. Share repurchases reduce common shareholders' equity and increase the proportion of debt in the capital structure, making the firm more risky and therefore less attractive to an unfriendly bidder. d. Some firms even borrow cash to repurchase shares, which affects the debt ratios even more than using already available cash to reacquire shares. e. Share repurchases use up available cash and thereby increase the attractiveness of the company to outsiders who believe that the stock buy back makes the company an attractive target.
Which of the following is a not a type of organizational information system?
A. Analysis processing system B. Decisions support system C. Transactional processing system D. Executive information system