Neal Is the Young, Likable, Optimistic, and Generous Son of a Prominent

question 20

Essay

Neal is the young, likable, optimistic, and generous son of a prominent public official. He has a master's degree in business and is the business partner of Ken and Bill in an oil drilling and exploration business. Neal also serves as a director on the board of the Bonanza Savings and Loan Association. While serving on the Bonanza Board, Neal votes to approve major loans to Ken and Bill without disclosing to the other directors that he is a business partner of Ken and Bill. Neal also personally arranges for a $900,000 line of credit from Bonanza for an oil drilling venture in which he is a partner with Ken. The drilling venture is unsuccessful and Ken and Bill both default on their loans to Bonanza, which then causes the S & L to become insolvent. Federal banking officials seize Bonanza and liquidate its assets to pay creditors and depositors. Because Bonanza is federally insured, tax money is also used to pay off depositors whose deposits are insured under federal programs. Bonanza shareholders lose their investment money. Was Neal's conduct as a director of Bonanza ethical? Analyze his conduct in light of the following ethical theories:
a. Intuitionism and the "Television Test."
b. Milton Friedman's ideas on corporate governance.
c. Deontological theories.
d. Rule utilitarianism.
e. Ethical relativism.

Examine the effects of economic crises on price levels and output.

Understand the role and effects of contractionary monetary policy on disinflation.

Evaluate the Federal Reserve's strategies to counteract adverse supply shocks on unemployment.

Understand the concept of gender-role transcendence and its distinctions from traditional gender roles.

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Definitions:

Equality Of Opportunity

The ideal that all individuals should have the same chances to pursue success or advancement, regardless of their background or circumstances.

Income Distribution

How the total earnings are distributed among the members of a community.

John Rawls

A philosopher known for developing the theory of justice as fairness, which considers how societal resources can be distributed equitably.

Income Distribution

The way in which total income is shared amongst the population.