Reference no: EM13672683 , Length: 749 Words
An industrial firm is confronted with the dilemma of whether it should include - on its balance sheet - a very costly liability for the clean-up of a hazardous waste pool that has accumulated over the past several years, this as a direct by-product of its operations. The company is in agreement that the cost of cleaning up the hazardous waste pool is a cost of doing business.
However, including this massive financial liability in the company's financial statements now will have the effect of immediately decreasing the total value of the company. In turn, because the company's worth will be deflated, the company's current stockholders will be harmed financially because the company will have lost much of its current value.
In contrast, if the company does not include the liability on its balance sheet, the company will clearly be overvalued, and will likely be viewed as dishonest in disclosure -- and anyone buying stock (or ownership) in the company will also be unknowingly buying shares of a company that is overvalued (i.e., the balance sheet will be misleading, showing the company as having greater net value than it actually has).
Let's assume that there are no accounting rules nor is there any clear guidance as to what this company should do. No matter what the company decides, innocent persons - whether its existing shareholders (if disclosure is made) or potential shareholders (if disclosure is not made - and is later required) will be seriously harmed as a result of either decision.
First and foremost, please describe the utilitarian implication of this situation. What do you think the company should do? Of secondary interest (if you'd like to respond), what would deontological ethics require? And what would Immanuel Kant require?
|
Culture of global firms tend to become ethnocentric
: The Perot Corporation believes that the mere fact that it is an American firm will give it an edge in NIE markets. Do you agree or not? One of the reasons for a deficient customer orientation is the decidedly centralized character of m ost firms' g..
|
|
Estimate the iqr of the tires tread life
: Estimate the IQR of the tires tread life - If the dealer is only willing to give a refund to no more 2% of the customers, for what mileage can he guarantee these tires to last?
|
|
Summarize ethical issues which were addressed in article
: Explain whether the study is qualitative or quantitative by citing specific clues from the article, such as sample size, data collection techniques, the nature of the data collected, or the data analysis techniques used and determine what question..
|
|
Taking a hard look at formal mentoring programs
: Write two paragraphs- summarizing the article and write one page with the information - Taking a hard look at formal mentoring programs
|
|
Describe the utilitarian implication of situation
: First and foremost, please describe the utilitarian implication of this situation. What do you think the company should do? Of secondary interest (if you'd like to respond), what would deontological ethics require? And what would Immanuel Kant req..
|
|
What influence would this injection have on blood pressure
: If 2 L of blood were injected into a normal human body, what influence would this injection have on blood pressure, cardiac output, preload and afterload?
|
|
Find the rotarional speed in rpm
: Find the value of K, its uncertainty (with 95% confidence), and the maximum possible error - Find the rotarional speed in rpm and its uncertainty. All measured values have a confidence level of 95%.
|
|
Requirements of a probability distribution function
: Show that this function satisfies the requirements of a probability distribution function and calculate the expected (mean) value of x
|
|
Calculate the longitudinal stress in the member
: Explain briefly why this structure can be modelled as a pin-jointed structure (PJS) for the purpose of determining the axial forces in the members.
|