How can a firm increase the life of a product without involving product changes? a. reintroduction b. product extension c. new p

Complete Question:

James Stilton serves as the CEO of RightLiving, Inc., a corporation that purchases life insurance policies at a reduced price from terminally ill individuals and sells them to investors. RightLiving compensates terminally ill patients with a percentage of the future death benefits (typically 65%) and subsequently sells the policies to investors for 85% of the future benefit amount. The patients receive funds to assist with their medical and other expenses, while the investors are assured a positive return on their investments. The difference between the purchase and retail prices represents RightLiving's profit.

Stilton is aware that some sick patients might acquire insurance policies through deceit (by concealing their illness on the application). If an insurance company uncovers such fraud, it will annul the policy and withhold payment. While Stilton is confident that most of the policies he has acquired are legitimate, he recognizes that a few may not be.

Requirement:

What additional ethical dilemmas might Stilton encounter?

Answer with Explanation:

Stilton's ethical challenges include:

• Should he disclose potential fraud to investors prior to executing sales?
• What policies should be established to ensure that legitimate individuals can easily sell their policies, and how would lack of such policies be unfair for RightLiving, Inc.?
• Stilton also faces ethical issues because the business model benefits from the early deaths of clients, which raises moral questions.

Response:

C. Locate a lender that is prepared to provide FHA loans.

Explanation:

The FHA loan program was established by the U.S. government to make home ownership more accessible for citizens. To qualify, the minimum credit score required is 500, with a down payment of 3.5% for scores of 580 or above, and 10% for scores between 500 and 579. Additionally, mortgage insurance must be acquired, and the proposed property must comply with FHA standards.

However, it is not within his control to find a lender offering FHA loans, as the lender must be sanctioned by the Federal Housing Administration. He can only secure a loan from a financial institution approved by the FHA.

Answer:

The financial drawback amounts to 138,600.

Explanation:

The allocated and depreciation costs are inevitable and thus should be regarded as expenses for the purchase option.

Additionally, any income from the extra segment is applicable only to the purchase option.

The avoidable costs include:

Direct Materials

Direct Labor

Variable overhead

Supervisor's salary

These costs are absent in the purchase scenario.

Executives and managers dedicate more time to listening than employees do because they hold the ultimate responsibility for decision-making. Careful evaluation of alternatives and thorough consideration of opinions generally yield superior results for the organization. Before making decisions, executives and managers seek out feedback and perspectives from their team members.

Clarifying the assignment would be the initial action John should undertake to expand Kerry's duties.

Explanation:

Option A: When new responsibilities are introduced, John must first clarify the nature of these tasks. This approach will help Kerry manage her work efficiently.

Option B: Although feedback is beneficial, it's not the initial step for adding responsibilities.

Option C: Informing others is John's duty, not Kerry's, thus, this option is not valid.

Option D: While accountability is essential, it comes at a later stage.