In the Summer of 2010, a Deep-Water Oil Rig Suffered

question 19

Essay

In the summer of 2010, a deep-water oil rig suffered a major malfunction and began to spew thousands of gallons of oil into the Gulf of Mexico. The oil spill devastated the gulf's economy, killing wildlife, covering beaches with oil and sludge, and making fishing in the waters hazardous. Investigators discovered that there was possible negligence on behalf of the oil company that owned the rig. How would sociologists categorize this crime? How do rational choice theory and strain theory help explain this crime?

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Definitions:

Liquidity

The ease with which an asset can be converted into cash without affecting its market price.

Profitability

Refers to a company's ability to generate income relative to its revenue, operating costs, and other expenses over a certain period.

Solvency

The ability of a business to meet its long-term debts and financial obligations.

Liquidity Ratio

A financial metric used to determine a company's ability to pay off its short-term liabilities with its available liquid assets.