Module 1 legal stuff

Question 1

Any information collected must have 4 essential features. What are these features?

Answer 1

CART

Cost effectiveness: The cost of gathering the information must not outweigh the benefits

Accuracy: Information collected must be accurate so it can be relied upon by the manager

Relevance: Information collected must be appropriate for the situation or decision being made and must be up to date

Timeliness: information must be made available to managers and other decision makers on time

Question 2

Explain some benefits of Multinational Corporations to the host country

Answer 2

Gain foreign exchange as a result of the initial
investment and exportation of products from these
companies. The Caribbean countries’ main trade
currency is the US dollar. Once these companies export
their products the country will gain foreign exchange
which will help to improve the balance of payment
position.

Improvement in the country’s Gross Domestic Product
(GDP). GDP is the value of all final goods and services
produced within a country over a one-year period. With
more output being produced by these MNCs, the GDP of
the country will increase, all other things being equal.

The country will experience a reduction in
unemployment. Most MNCs will employ some citizens
of the country in which they are located. When this
occurs, some people who are unemployed will be able
to find jobs. As more people find employment, their
standard of living should also improve.

Question 3

Define the term Social Responsibility

Answer 3

This is
a practice of firms to act in a manner so that their actions
do not negatively affect society or the environment.