Using the Information in Chapter 6, Give Two Examples of a Ethics

question 4

Essay

Using the information in Chapter 6, give two examples of a ethics issue related to allocation of resources. What ethics principles can assist in resolving your examples?

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Definitions:

Cash Inflows

Money received by a business from its activities, e.g., sales of goods, provision of services, loans received.

Cash Outflows

Cash Outflows are the amounts of money paid out by a business in a period, including expenses, investments, and loans repayments.

Profitability Index

A calculation used to determine the relative profitability of an investment, computed by dividing the present value of future cash inflows by the initial investment cost.

Payback Technique

A method of evaluating investments by determining the length of time it will take to recoup the original investment amount.