1. Business ethics become a criminal act when;

A. Collusion between members of corporate management artificially inflate a company’s reported earnings through accounting manipulation, which is a Federal offense subject to criminal prosecution.

B. The board and senior management engaged in overly promotional advertising, that is not factually supported.

C. Boards who create stock compensation plans that are designed to be risk free (option strike price) and benefit only few senior managers, end up creating an enormous wealth gap between a handful of elites while ignoring the workforce as a whole. These are un ethical and damage employee morale and stockholder benefit.

2. Why might a company decide that exporting is not the best choice for entering the global market?

a. If manufacturing abroad is a higher cost than manufacturing locally

b. If there are lower-cost locations for manufacturing the products abroad

c. If there are low transportation costs from the manufacturing location to the customer

d. If there is a low chance of tariff being enacted by governments in countries with target customers