What is taught in business school does not support this. The orientation towards profit is natural, and a part of the manager's job. However, the orientation towards excessive risk-taking is not taught in business school, but rather learned in the workplace. The government exhibited lax oversight of the banking industry. Indeed, the FDIC chairperson Sheila Bair had called for increased regulation of the mortgage industry and those calls fell on deaf ears in both Washington and on Wall Street (Lizza, 2009). Those within and without the industry were more interested in the short-term profits generated by the industry than protecting the public.
The short-term time orientation of managers that causes them to ignore risk in favor of returns is a strictly Wall Street phenomenon. That is the land of quarterly earnings reports, and substantial punishment of a firm's stock if it fails to live up to expectations. The market movers on Wall Street have a short-term time orientation and that drives the bankers to have one as well. That the government encourages such behavior by bailing out banks so that they do not need to face the negative consequences of risk only exacerbates the problem.
It is greed that caused the financial crisis (Palmer, 2008). Yet, greed is not taught on business schools. Greed is a part of human nature, and it is critical therefore that the financial system be structured...
theories business cycle determine viable. Explain rationale. B) Recommend policy bring U.S. current economic slump. Provide specific examples support response. Business Cycle Theories A) There are several theories that refer to the business cycle. The real business cycle theory states that fluctuations within the business cycle are determined by technological shocks. In the opinion of Finn E. Kydland and Edward C. Prescott, economic crisis and fluctuations cannot be determined by monetary
Business Development Learning how to go about selling to the U.S. government which is the largest buyer of goods and services in the world is a very daunting task. The federal government is expected to reserve a fair proportion of its purchases and contracts for services and property for small businesses. The government achieve s this through setting aside some parts of its procurement to small businesses. Small businesses that have
This distribution can be applied to multiple business situations even where data is distributed differently, because a normal distribution adopts the central limit theorem which suggests that no matter how a population is distributed, the distribution "of the means of random samples approaches a normal distribution for a large sample size" (ICMBA, 2002). Business executives can use normal business distribution to create diversified asset portfolios, to calculate process variations within
Third, the information systems implications also need to concentrate on how to manage pricing and discounting across product groups and also across payment methods. This is an area where small businesses can gain significant competitive advantage and one that is consistently ignored or not undertaken at all. For the payment card strategies in small businesses to be profitable, information systems, specifically applications, need to be created and managed to ensure
Some conventional building design, construction and maintenance practices create conditions that are capable of causing illness in healthy individuals or exacerbating illness in already sensitized individuals (Small, 2009). There are several factors that contribute to the overall health of a building. These include: cleanliness, thermal comfort, ventilation and air quality, lighting, noise, outside awareness and furniture (Hubbard, Rice and Beamish, 2008). The Bond received many acknowledgements in regards to its
Introduction As the GM Case Study indicates, competition between the local brand and the foreign brand can give the local brand an edge especially when the foreign brand has more cost attached to it. GM, for example, was obliged to cut the costs of its cars in China because the national brands were gaining market share “by offering cheaper sport utility vehicles” (Bloomberg, 2015). In Kuwait, there is a lot of
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