Bill Gates Is a Founder of Microsoft and the World's

question 104

Essay

Bill Gates is a founder of Microsoft and the world's richest individual. Suppose Microsoft sells more software and Mr. Gates acquires another billion dollars in wealth. Simultaneously, suppose a burglar whose income is well below average broke into Bill Gates' house and stole a million dollars' worth of antiques. Using the "it's not fair if the rules aren't fair" approach to fairness, is Mr. Gates' acquisition of additional wealth fair? Is the (poor) thief's acquisition fair?

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Definitions:

Subsidiary

A company that is completely or majority-owned by another company, referred to as the parent company.

GAAP

Generally Accepted Accounting Principles, a set of rules and standards designed to ensure consistency, transparency, and integrity in the financial reporting of companies in the United States.

Amortization

The systematic allocation of the cost of an intangible asset over its useful life, reflecting the consumption of the asset's economic benefits.

Consolidated Net Income

The total net income of a parent company and its subsidiaries after the elimination of inter-company transactions, presented in consolidated financial statements.