Respond to the following scenario: Two young men, brothers, had gotten into serious trouble. They were secretly
Question:
Respond to the following scenario:
Two young men, brothers, had gotten into serious trouble. They were secretly leaving town in a hurry and needed money. Karl, the older one, broke into a store and stole a thousand dollars.
Bob, the younger one, went to a retired old man who was known to help people in town. He told the man that he was very sick and that he needed a thousand dollars to pay for an operation. Bob asked the old man to lend him the money and promised that he would pay him back when he recovered. Bob wasn't sick at all, and he had no intention of paying the man back. Although the old man didn't know Bob very well, he lent him the money. So Bob and Karl skipped town, each with a thousand dollars.
Which is worse, stealing like Karl or cheating like Bob? Why is that worse?
What do you think is the worst thing about cheating the old man? Why is that the worst thing?
In general, why should a promise is kept? Is it important to keep a promise to someone you don't know well or will never see again? Why or why not?
Why shouldn't someone steal from a store? What is the value or importance of property rights?
Should people do everything they can to obey the law? Why or why not?
Was the old man being irresponsible by lending Bob the money? Why or why not?
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus