Ethics refers to the value system by which a
person determines what is right or wrong, fair
or unfair, just or unjust.
What is a effect of business ethics?
Co-relation in organisation
c. Can eiiher xed investment or inventory be negative in a given year?
Answer: Fixed investments cannot be negative, because additions to the capital stock
cannot be negative, but inventory investments can be negative. because inventories can end a
1!]. Nominal GDP in Nowhereland in EWS and EDDIE is as follows:
GDP 2W5 NGDP 2W5
$4 trillion $4.8 trillion
Can you sayr that the production of goods and services in Nowhereland has increased between 2005 and
EDDIE? Why or Iii-thyr not?
Answer: One cannot
11. Answer these questions about GDP:
a. Gould next year's real GDP exceed next years nominal GDP?
Answer: Next year's real GDP can exceed next year's nominal GDP. but only if the price
level falls. If the price level rises, next year's nominal GDP will e
Answer: The labor force paroipation rate would become 55% cfw_11.11 miHioniZDEi million].
cl. Starting from the situation in (a): what would happen to the labor force participation rate if employment
rose from 1.413 million to 150 million"?
Step 1 of 4
a. Earnings of foreigners and foreign firms in United States equal earnings of American c'rtizens and firms oversea 5:
GNP would be equal to GDP because inflow of income in the country is equal to outow of income from the
GNP = GDP +
Answer: To count intermediate goods as well as final goods and services would result in
double counting the value of some goods and services.
c. Why does GDP measure only the value of goods and services produced within a counhy?
Answer: GDP is an attempt
2. 1ii'iil'hich of the following are included in GDP calculations?
a. cleaning services performed by Molly Maid Corporation cfw_included
b. lawnmUMng services performed by a neighborhood child
c. drugs sold illegally on a local street comer
1. Answer the following questions about GDP:
a What is the definition of GDP?
Answer: GDP is the value of all nal goods and services produced within a countrgiir during
a given period of time [atmcst always one year.
b. li'lilhyr does GDP measure
. The expenditures on tires by the Ford Motor Company are not included directly in GDP
statistics while consumer expenditures on replacement tires are included. Why?
1iiiihen Ford Motor Company buys tires to put on a vehicle that
3. To which categoryr of U5. GDP expenditure does each of the following correspond?
Department of Motor Vehicles services
automobiles exported to Europe
a TIMI? constructed fourbedroom house
a restaurant meal
additions to inventory.r at a f
Types of Business Ownership
Ease of Formation
Retention of Control
Pride of Ownership
Retention of Profits
Shells, Trusts and similar entities
In International Money Laundering
SSA Deborah Morrisey
ICE, Miami, Fl
To Be Covered Today:
Why utilize off-shore entities?
How easy are they to establish?
What are the typical offshore entiti
How do we effectively manage current core competencies
while simultaneously developing new ones?
do we assemble bundles of resources, capabilities
and core competencies to create value for customers?
How do we learn to change rapidly
Discuss the governments role in its
relationship with business
List major reasons for regulation, the
types, and issues arising out of
Chapter Ten Outline
A Brief History
"r. Answer these questions about durable goods and GDP:
3. Do consumer nondurehle or durable goods tend to drenge more over the course of a business cycle?
Answer: Sales of consumer durable goods change vary more thanconsumer nondurahie
goods over the cou