The CFO of a certain company always wears his green suit on a day that the firm is about to release positive information about his company. You believe that you can profit from this information by buying the firm’s shares at the beginning of every day that the CFO shows up wearing this green suit. Describe which form of market efficiency is consistent with your belief.
^respond to the question above with 200 words ^
To define an ethical business culture you only need one word: Integrity. While a business’s main goal is to maximize profits while keeping costs low, they must also be willing to maintain their values without forsaking them for gain. There was a particularly sinister case of unethical business culture with Nestle in the 1970s. Nestle had begun to distribute their baby formula, for free, to developing countries and created a need where none had existed. They supplied the formula just long enough for the mothers to keep the mothers from using breast milk and once they dried up took away the supply. These mothers were unable to purchase said formula and babies were dying as a result. (Nayab, 2019). This case is a prime example of a company sacrificing their values and attempting to maximize profits at the expense of the customer. A company should hold the lives of its customers above all else. This incredibly short sighted decision not only cost the company millions of dollars but forever put a stain on their credibility and ruined hundreds of lives.
^respond with at least 100 words^
There are some drawbacks with the goal of maximizing profits such as the unaccountability of uncertainty and risks in the future. Entrepreneurs nowadays want to avoid risks and bankruptcy, and instead they want to focus on generating revenue to pay back their expenses, or generate cash flows that exceed their expenses. My grandfather owned and managed a grocery store that remained unchanged throughout his lifetime. He focused instead on keeping his business afloat, generate revenue that exceeds his expenses and earn a stable income to live a stable lifestyle.
respond with at least 100 words^