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1 . Identify relevant and irrelevant information in various decision situations. Read the 2 0 0 5 Wall Street article that is attached. It discusses
Identify relevant and irrelevant information in various decision situations.
Read the Wall Street article that is attached. It discusses the use of companyowned airplanes for personal travel by executives. One of the arguments of the article is that the CEO's are not being charged adequately for the personal use of the aircraft. Standard practice, according to the article is to charge the CEO the permile reimbursement rate established by the Internal Revenue Service. Critics argue that the IRS reimbursement rate does not begin to address the incremental cost of the flight.
Once you have read the article, respond to the following questions.
What do you believe the relevant costs of the personal flights taken by the CEO are and why?
From the shareholders' perspective, do you think that the CEO should be required to reimburse any of the costs of the flight, and if so how should that cost be determined?
Or should all companies disallow personal use of corporate assets.
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