Management Assignment Example | Topics and Well Written Essays - 500 words - 9

Management - Assignment Example 2. I agree that possibly unethical behavior in companies is not essentially for personal gain because there are cases where businesses sought to protect or help its employees, clients, or community. Carol Dweck’s research does influences greatly the point of unethical behavior for personal gain by companies (Gladwell, 2013). If a company considered corporate and social responsible paints itself into a corner, unethical behavior may be among its options to secure its employees or community. However, such companies often behave unethically to secure their financial or personal interests, which Gladwell can consider â€Å"human and corporate nature† (Gladwell, 2013). 3. Financial leverage is the level an organization applies fixed-income interests like debt and ideal equity (Monczka, Handfield, Giunipero, and Patterson 2011). Benefits of financial leverage include the amplification of shareholder returns, more flows of liquid assets, seized economies of scale, and enhancing credit rating. The risks of financial leverage include the volatility of any business investment vulnerable to consumer preference towards its commodities or services and the requirement of adequate returns that make up for the extra risk involved when the company borrow finances that ultimately should be paid back (Monczka et al., 2011). 4. Banks have a low ROA since it is a rule of thumb for venture experts to view non-financial institutions’ ROA be below 5%, which the exception of financial or credit institutions. Banks always struggle for an ROA of 1.5% or more since their key assets are loans to companies or individuals (Monczka et al., 2011). To give out these loans, banks ought to have large pools of liquid assets that also serve as the bank’s source of revenue. Banks are highly advantaged with borrowed finances with a small equity base, which amplifies their ROE (Monczka et al., 2011). 1. The main conditions I would consider single-sourcing an