...Ethics Reasoning Assignment – Lehman Brothers Relating Questions to Rubrics 1. Describe the situation at LB from an ethics perspective. What’s your opinion of what happened here? Rubric: Ethical Sensitivity or Awareness Able to sieve out, recognize and identify ethical issues and risks in the case scenario Recognizes ethical issues and their implications, including potential consequences to various stakeholders Identifies aspects of the case situation that are likely to lead to a conflict of interest situation and/or making it susceptible to ethical risks2 (this rubric dimension overlaps the first 2). st You should pinpoint the unethical practices, actions and behaviour in LB (1 part of the qn).Then, discuss nd the implications and consequences for stakeholders resulting from these unethical acts (2 part of qn). 2. Could anything be done differently at Lehman Brothers to prevent what happened? Explain. Rubric: Ethical knowledge, understanding and Judgement Able to raise pertinent questions or clarify relevant information to obtain a clearer understanding and/or form an appropriate judgment of the issues involved in the case scenario Addresses relevant and incisive questions and the extent to which a clear understanding and judgment of the issues involved in the case scenario are exemplified with supporting illustrations Proposes and discusses the ethical notions of rights, duty, utility, virtue, or justice and fairness in resolving the problems or issues Here, you...
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...Introduction: * Andre Pires opened automobile store (Quickfix Auto Parts) 5 years ago * Worked as a technician, parts department manager for over 15 years * Doubled his store size by the third year * Worried about past two years (net income had been negative and cash flow decreased) * Wanted to improve this situation before suppliers found out * Hired a student from the finance department of university´s business school to find arguments for the bank to get loan in the future 1. How does Quickfix´s average compound growth rate in sales compare with ist earnings growth rate over the past five years? Compound growth rate in sales: Net salest+1-Net sales(t)Net sales(t) =annual growth rate in sales 2001 to 2002: = 0.0917 2002 to 2003: =0.191 2003 to 2004: =0.12 2004 to 2005: =0.16 9.17+19.1+12+164 = 0.141 average annual growth rate in sales The average annual growth rate is 14.1% earnings growth rate: Net incomet+1-Net income(t)Net income(t) 2001 to 2002: =0.374 2002 to 2003: =-0.907 2003 to 2004: =-8.73 2004 to 2005: = 0.994 Net income decreased from 16634$ to -102$ 2.Which statements should Juan refer to and which ones should he construct so as to develop a fair assessment oft he firm´s financial condition?Explain why? * Balance sheet picture of a company * refer to balance sheet and income statement shows revenue the company earned * shows financial strenght * make comparisons...
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