The text (Moral issues in business, chapter 7, page 338-340) says that cost-benefit analysis is often difficult because conflicting value judgments are at stake. Explain what cost-benefit analysis is, what value judgments might be at stake and why this poses a problem for cost-benefit analysis.

answer

watching

views

For unlimited access to Homework Help, a Homework+ subscription is required.

You have 0 free answers left.
Get unlimited access to 3.8 million step-by-step answers.

Get unlimited access

Already have an account? Log in

Ritu KharbLv5

28 Sep 2019

Unlock all answers

Get 1 free homework help answer.

Already have an account? Log in

Related questions

Most people conclude that the costs outweigh the benefits of a suicide bombing attack; yet, some people willingly engage in such activity. Are they miscalculating the cost/benefit problem, or do they simply value costs and benefits differently? Explain.

What does this tell us about the use and/or limits of cost-benefit analysis? Can you think of something else that would be difficult to capture in a purely cost-benefit approach?

pinkbeetle949

Case Study #7

STOCK BROKERS SHENANIGANS

You work for a Stock Brokerage Company (S). As part of its sales incentive program, S awards points to its salespeople for sales they make. These points can then be cashed in for vacation trips. S owns 20% of a certain fund group (M), and S's ownership stake increases with increased sales. S is now rewarding sales of M by offering double credits and five-day trips to European and U.S. resort towns for brokers with more than $500,000 in production in M. Although the firm has a policy against sales contests on mutual funds, and while in the past, reps were unable to accept trips from other funds because of a strict interpretation of NASD rules, the firm says that these are not sales contests and the trips are informational and related to due diligence.

Apparently, reps are not being forced to sell the fund. No pressure to do more or less says one of the brokers. However, the firm says participants do need to qualify (for the trips) by doing business with a particular product and express an interest in doing more. The firm considers the trips advanced training. WHAT ARE THE ETHICAL ISSUES? Reminder: Ethical issues are not the same as legal or business issues. Let s assume that the firm s actions represent a good business decision and are consistent with the laws and regulations. Are they Ethical? WHO ARE THE STAKEHOLDERS?

crimsonhound401

Weekly leaderboard

Home

Homework Help 3,900,000

Economics 400,000

The text (Moral issues in business, chapter 7, page 338-340) says that cost-benefit analysis is often difficult because conflicting value judgments are at stake. Explain what cost-benefit analysis is, what value judgments might be at stake and why this poses a problem for cost-benefit analysis.

Unlock all answers

Related textbook solutions

Principles of Economics

Principles of Macroeconomics

Principles of Microeconomics

Related questions

Weekly leaderboard