A Firm Is Considering Opening a New Plant in an Existing

question 235

Multiple Choice

A firm is considering opening a new plant in an existing building at a business park. It is located in the middle of a coal-producing region, which remains visibly blighted by the effects of strip mining. The plant's heating system is based on coal heat, which is locally produced and relatively cheap, reducing the plant's operating expenses significantly. Company engineers note that the plant's roof is ideal for solar panels, which would reduce the firm's future dependence on coal, nuclear, and other conventional sources of energy. However, the cost of installing the panels is considerable and would mean that the new plant would not return a profit to the company for several years. The CEO feels that the panels should be installed.
Which of the following, if true, strengthens the ethical standing of the CEO's position?

• A) Due to new federal "cap and trade" controls, the cost of coal is likely to increase sharply in the next decade, along with that of electricity generated by burning coal.
• B) The commitment to "green" and sustainable energy use would lower the company's emissions locally as well as support the development of an alternative power industry.
• C) Regulations require mining firms in the region to restore natural landscaping after operations are completed, including sections stripped before the new standards were adopted.
• D) Projections made by the firm's long-range planning team indicate that the market will support full use of the new location for at least twenty years, enough time to see savings accrue from the solar panels.
• E) The most economical source for purchasing the solar panel equipment is owned by the same corporation responsible for strip mining in the new location.

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Definitions:

Payroll Taxes Payable

Taxes owed to the government by an employer, based on employee wages, that have been incurred but not yet paid.

Financial Affairs

The management and administration of monetary activities, investments, and financial strategies of an individual or organization.

Pledged Assets

Assets that are offered as security or collateral for a loan or obligation.

Priority

The order of importance or urgency, often used in legal and financial contexts to determine the sequence in which obligations are to be met or rights are to be exercised.