James stilton is the chief executive officer (ceo) of rightliving, inc., a company that buys life insurance policies at a discount from terminally ill persons and sells the policies to investors. rightliving pays the terminally ill patients a percentage of the future death benefit (usually 65 percent) and then sells the policies to investors for 85 percent of the value of the future benefit. the patients receive the cash to use for medical and other expenses, the investors are "guaranteed" a positive return on their investment, and rightliving profits on the difference between the purchase and sale prices. stilton is aware that some sick patients might obtain insurance policies through fraud (by not revealing the illness on the insurance application). insurance companies that discover this will cancel the policy and refuse to pay. stilton believes that most of the policies he has purchased are legitimate, but he knows that some probably are not. using the information presented in this chapter, answer the following questions.

1.would a person who adheres to the principle of rights consider it ethical for stilton not to disclose the potential risk of cancellation to investors? why or why not?

2.using immanuel kant’s categorical imperative, are the actions of rightliving, inc., ethical? why or why not?

3.under utilitarianism, are stilton’s actions ethical? why or why not? what difference does it make if most of the policies are legitimate and will be paid rather than being fraudulently procured and void?

4.using the business process pragmatism™ steps discussed in this chapter, discuss the decision process stilton should use in deciding whether to disclose the risk of fraudulent policies to potential investors.

Gino's restaurant is a popular restaurant in boston, massachusetts. the owner of the restaurant has been trying to better understand costs at the restaurant and has hired a student intern to conduct an activity-based costing study. the intern, in consultation with the owner, identified the following major activities: activity cost pool activity measure serving a party of diners number of parties served serving a diner number of diners served serving drinks number of drinks ordered some costs, such as the cost of cleaning the linens that cover the restaurant's tables, vary with the number of parties served. other costs, such as washing plates and glasses, depends on the number of diners served or the number of drinks served. data concerning these activities are shown below. serving a party serving a dinner serving drinks total total cost $47,600 $153,000 $59,800 $260,400 total activity 7,000 parties 30,000 diners 46,000 drinks prior to the activity-based costing study, the owner knew very little about the costs of the restaurant. she knew that the total cost for the month was $260,400 and that 30,000 diners had been served. therefore, the average cost per diner was $8.68.required: 1. compute the activity rates for each of the three activities 2. according to the activity-based costing system, what is the total cost of serving each of the following parties of diners? a. a party of four diners who ordered three drinks in total b. a party of two diners who do not order any drinks c. a lone diner who orders two drinks 3. convert the total costs you computed in part (1) above to costs per diner. in other words, what is the average cost per diner for serving each of the following parties: a. a party of four diners who order three drinks in total b. a party of two diner who do not order any drinks c. a lone diner who orders two drinks 4. why do the costs per diner for the three different parties differ from each other and from the overall average coast of $9.80 per diner?

Mcdonald's fast-food restaurants have a well-designed training program for all new employees. each new employee is supposed to learn how to perform standardized tasks required to maintain mcdonald's service quality. due to labor shortages in some areas, new employees begin work as soon as they are hired and do not receive any off-the-job training. this nonconformity to standards creates

Choose the statement that is incorrect. a. search activity occurs only in markets where there is a shortage. b. when a price is regulated and there is a shortage, search activity increases. c. the time spent looking for someone with whom to do business is called search activity. d. the opportunity cost of a good is equal to its price plus the value of the search time spent finding the good.