Question: Financial performance metrics cause managers to ignore ethics and
“Financial performance metrics cause managers to ignore ethics and focus just on meeting their profit targets. After all, look at what happened at Enron, Global Crossing, WorldCom, Tyco, HealthSouth, and several other companies.” Evaluate this quote. Can financial performance metrics be compatible with ethical behavior?
Answer to relevant QuestionsThe principle reason for transfer-pricing systems is to communicate data that will lead to goal- congruent decisions by managers of different business units. When managers take actions that conflict with organizational ...As the CEO of Middling Hardware Company, you examined the following measures of the performance of three divisions (in thousands of dollars):1. Calculate for each division the rate of return on net assets and the economic ... “Double-counting of costs occurs if depreciation is separately considered in DCF analysis.” Do you agree? Explain.Study Appendix 11. Describe how internal consistency is achieved when considering inflation in a capital-budgeting model.Assume that the combined federal and state income tax rate for Kafka Company is 30%.1. The book value of an old machine is $40,000. Kafka sold the machine for $35,000 cash. What is the effect of this decision on after-tax ...
Post your question