FIN 571 Week 1 - DQ 1 - 7637

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What are ethics? If you follow all applicable rules and regulations, are you an ethical person?

 

 According to (Dictionary.com) “ethics are that branch of philosophy dealing with values relating to human conduct, with respect to the rightness and wrongness of certain actions and to the goodness and badness of the motives and ends of such actions.” I believe if you follow the rules, report any unethical behavior you see or hear about, do things right, and basically follow your instinct on what is right or wrong given the values you have been taught then you can say you are an ethical person.  I define ethics as simple as what is bad and what is good. It is a thin line between what is right or wrong to do. Ethics are in everywhere and everything we do. We must make decisions, perform task, etc. and we are constantly using our judgment to decide if we should do it or not.

Why do many business managers feel that ethical behavior is essential to the profitability and survival of their firm?

Being a leader or a manger is a process. Leaders carry out this process by applying their leadership attributes, such as beliefs, values, ethics, character, knowledge, and skills. Thinking about unethical behavior, I have seen this in teachers, also in politics, at work to get a better position, etc. People have lost their self respect and prefer to pass by their ethics and values which is more important to be more recognized and more profitable. I see the only way to address these issues is not letting any of these cases fall, applying all the weight of justice and penalizing said persons to lose license, etc. Ethics and respect is something you learn, you build and even though it may take you all your life to build it you can lose it in a matter of seconds.

 

Suppose you are a manager in a manufacturing business. How are the capital markets relevant to the effective performance of your job?

"Capital market" just refers to any of the public exchanges where capital securities (ie, stocks and bonds) are traded. As a manager it would be relevant and importantly related to job performance because this is what will bring confidence to my employees, job security and satisfaction. This is an indicator of how well the business is doing in the market. When employees feel secure in their job their perform better and are more productive.

 

Reference:

Ethics. (2009) Dictionary.com

 

 

 

 

 

 

 

 

Your Uncle left you a some of money and you need to calculate what is the most fiscally beneficial way to receive your payout. There are 3 options:

1. Take $10,000 now
2. Take 8 $2,000 payments at the end of the year for the next 8 years or
3. Take a $24,000 lump sum payment at the end of 8 years.

If the discount rate is 8 percent, which is the best option?

 

If I take option number one I would only lose $800 dollars given the discount rate but still $9,200 dollars would be in my pocket now.

If I choose option three I can get a lump sum of $24,000 at the end of 8 years but given the discount rate I would lose $1,920 leaving me with $22,080. I don’t know what can happen 8 years from now, this is why I chose option three.

I would have to choose option number two because eight payments of $2,000 dollars total $16,000 thousand dollars. We multiply these $16,000 by 8 years and we get $128,000 thousand dollars. With the discount rate of 8% I would still have to give out $10,240 dollars but I would still have $117,760 in my pocket.

Solution Description

What are ethics? If you follow all applicable rules and regulations, are you an ethical person?

 

 According to (Dictionary.com) “ethics are that branch of philosophy dealing with values relating to human conduct, with respect to the rightness and wrongness of certain actions and to the goodness and badness of the motives and ends of such actions.” I believe if you follow the rules, report any unethical behavior you see or hear about, do things right, and basically follow your instinct on what is right or wrong given the values you have been taught then you can say you are an ethical person.  I define ethics as simple as what is bad and what is good. It is a thin line between what is right or wrong to do. Ethics are in everywhere and everything we do. We must make decisions, perform task, etc. and we are constantly using our judgment to decide if we should do it or not.