Jocelyn Fenelus
Discussion Board 1
Business 620
January 25, 2016
Liberty University
1. Total Revenue
Earnings $35,000
Total Cost (explicit) $148,000 Total (implicit) Cost $12,000
Total (Implicit and Explicit) $160,000
Accoun.ng profit $-113,000 Economic profit $-125,000
a) The business will need to earn $113,000 to break even in terms of business profit
b) The business will need to earn $125,000 to break even in terms of economic profit
c) Let P= Price of building, then the business will need to earn $125,000+P to break even in
terms of economic pro0t.
3. Unlawful behavior is behavior that violates the law while unethical behavior is governed by
principles that go beyond the rule of the law. What is ethical is not always lawful, in cases where
the law itself is lawful and what is lawful is not always ethical. A perfect example is Roe v. Wade
which equates the life of the unborn to human wastes if the mother does not want the child.
From a business perspec.ve, a great example of lawful yet unethical behavior is big U.S
corpora.ons finding loopholes to avoid paying federal taxes. 20 companies in the S&P 500 paid
li<le to no taxes in recent years (Krantz, 2013). At the same .me, their CEOs are making record
earnings in salaries and bonuses. A great example of unlawful behavior comes from Toyota
which hid an accelera.on pedal malfunc.on and an.lock braking malfunc.ons in many of its
hybrid vehicles. As a result, the company had to se<le for a 0ne of $1.2 billion in US alone and
