Susan Mbaya is an employee of Mauzo Ltd. She has provided the following details pertaining to

If the price of Spanish olives imported into the United States decreases, then:

Maurinko [17]

Answer:

d. the consumer price index will decrease, but the GDP deflator will not decrease.

Explanation:

If the price of Spanish olives imported into the United States decreases, then the consumer price index will decrease, but the Gross Domestic Products (GDP) deflator will not decrease.

The GDP price deflator also known as the implicit price deflator, measures the changes in the level of prices for all of the final goods and services produced domestically in an economy in a year.

The GDP deflator can be calculated by using the formula;

GDP deflator = (Nominal GDP/Real GDP) × 100.

6 0

3 years ago

General Discussion Questions What should business leaders take away from this scandal? What could Wells Fargo have done differen

Vesna [10]

Answer:

From this scandal, business leaders should learn to:

(a) not encourage unethical practices directly or indirectly among employees.

(b) not set unrealistic targets for employees to achieve within an unrealistic time-frame.

(c) Institute measures to prevent unethical practices.

(d) Encourage honest employees to grow in the company.

(e) Honor adherence to regulatory framework as applicable to the company.

Wells Fargo could have done differently in these manner:

(a) When the first incident of aggressive sales practice was reported in year 2004 with identified incidents from year 2002, they could have instituted measures to prevent recurrence of such incidents. Some of the practical and workable measures are enumerated in succeeding paragraphs.

(b) Convene a meeting of senior managers to provide them with appropriate guidelines so as not to repeat such incidents.

(c) Instruct senior managers to advise their juniors to refrain from any such aggressive sales practices.

(d) Investigate to determine the extent of impact of aggressive sales practices as on 2004 and take remedial actions against those who are engaged in such activities.

(e) Promote the whistle-blower method of instantaneous reporting of an incident by anyone who has witnessed such an incident.

(f) Reward employees having honesty, integrity and moral values.

Practice of Ethical Leadership Questions

CEO John Stumpf’s model was to aggressively cross-sell products by any means. While leading the bank in doing so, he had compromised on the minimum value system that any financial institution or any company must adhere to. The cultural impact that had on Wells Fargo is listed below:

(a) Employees were pressurized for resorting to unethical practices.

(b) Employees reporting matters on unethical practices were punished.

(c) The performance management/ measurement system, in effect, encouraged dishonesty in employees.

(d) The compensation system was skewed in favor of bonus.

(e) Since, the supervisors pressurized employees, the structural dishonesty within the organization was evident.

Leaders can encourage ethical behavior in their organization in the following manner:

(a) Demonstrate personal ethics in their words and actions.

(b) Instruct senior managers to strictly adhere to the ethical norms to be followed.

(c) Instruct senior managers to communicate company’s ethical agenda to the supervisors/ other junior employees within their departments/ sections.(d) Monitor adherence to / violation of ethical practices on a regular basis.(e) Institute immediate remedial measures to prevent recurrence of any unethical practice.

(f) Encourage employees to report incidents of unethical practices.

(g) Reward honest and hardworking employees.

Well Fargo’s system of ensuring Ethical System within the bank, such as ethics hotline to report unethical behavior did not work because, the top management, led by the CEO did not pay any importance to prevention of unethical practices. Rather, they steered in an organized and structured manner to promote unethical practices.

Leaders can take the following steps to design systems that encourage ethical behavior:

(a) The top leaders must “think ethics”, “speak ethics” and “act ethics”. This is the top most fundamental step in the direction of designing systems to encourage ethical behavior.

(b) Matters on “what is ethical and what is not ethical” must be circulated across the organization.

(c) Periodic briefing must take place from the top management to the junior most employees in a structured and organized manner.

(d) Encouragement on reporting (whistle-blowing) incidents of unethical practices must be given.

(e) System of rewarding honest and hardworking employees must be put in place.

3 0

4 years ago

Below are the transactions for the louisville company: proceeds from issuance of bonds payable $635,000 payment to purchase equi

Marta_Voda [28]

285,000 net cash provided by financing activities.

3 0

4 years ago

To determine whether the goal of stable prices is being achieved, the Federal Reserve monitors the ________; to determine whet

Kay [80]

Answer:

Core PCE deflator inflation rate;

the Output gap

Explanation:

Goals of Monetary Policy

There are several goals of monetary policy. They includes maximum employment, stable prices, and moderate long-term interest rates. Usually in the long run, the above goals works in harmony and empower each other, but in the short run, they might be in conflict. The main goal of this policy is price stability as it is the source of maximum employment and moderate long-term interest rates.

The Fed has two possible instruments:they includes;

1. Monetary base

2. Federal funds rate

Output Gap

When this gap is positive, an inflationary gap, the inflation rate increases drastically or accelerate. This will make the Fed to consider raising the federal funds rate. It is said that If the output gap is negative, a recessionary gap, inflation might ease. Thereby making the Fed to consider lowering the federal funds

The Stables Prices Goal

The Fed do put close attention to the CPI removing fuel and food which is the core CPI. The rate of increase in the core CPI is simply termed core inflation rate. The Fed do believes that the core inflation rate provides a better measure of the underlying inflation patterns and a better prediction of future CPI inflation.

5 0

3 years ago

Using email for ____ purposes has many benefits, including low cost, immediate communication, interactivity, and the ability to

Maksim231197 [3]

Answer: a. marketing

Explanation:

Using email for marketing purposes has become a very effective method of advertising since the advent of the internet and subsequently email services. It is quite low cost and yet has a wide coverage.

It also enables immediate communication that can be quite interactive thereby ensuring that customers can be personally catered for. It also allows for creativity in marketing as a multitude of methods can be used ranging from newsletters to posters.

6 0

3 years ago