NaimExplain

What is a major issue in the E&P industry? Answer: - Commodity price volatility presents risk to all O&G companies - As a result of this, profitability can be volatile and the industry generally poses higher credit risk than most other sectors w/out strong lending controls

What is the Basic Business Model of E&P companies? Answer: - FIND the minerals - EXTRACT the minerals - SELL the minerals

How are Prime and LIBOR different? Answer: - Prime is the rate banks charge to a customer - LIBOR is rate the banks lend to other banks

What are the actual sources of repayment? Answer: - Operating cash flows - assets pledged as collateral - Other borrower assets that are already pledged as collateral and assets of the guarantors

What are the ordinal sources of repayment? Answer: -Primary (Operating cash flows) -Secondary (Assets pledged as collateral) -Tertiary (Other Borrower assets not already pledged as collateral and assets of the Guarantors)

What are some forms of long-term business loans? Answer: -Term loan -revolving credit lines -project loans -loans to support acquisitions of other business firms

What are some forms of short-term business loans? Answer: -Self-Liquidating Inventory Loans -Working Capital Loans -Interim Construction Loans -Security Dealer Financing -Retailer and Equipment Financing -Asset-Based Financing

What does the Cash Conversion Cycle look at in terms of time? Answer: - time needed to sell inventory - time needed to collect receivables - time the company is afforded to pay its bills without incurring penalties

Briefly state Deborah Johnson's argument ("Privacy") that despite digital technology's advantages outweighing those of the personal privacy it threatens, personal privacy is nevertheless defensible. Answer: • Johnson's argument states that we will start with a utilitarian analysis and then shift away from that toward arguments based on autonomy and democracy. • Privacy is a complex value that is intertwined with autonomy, equality, and democracy, and its importance ought to be recognized in IT-based practices.

Define the issue of sustainability that Holland engages in "Sustainability." Answer: Develop technologies that are cheaper in their depletion of natural capital.

Briefly describe the difference according to Lester Milbrath (Environmentalists: Vanguard for a New Society) between the "rearguard" and the "vanguard." Answer: Rearguard sees that it can be solved with tech, is a small problem with no limits to growth, while vanguard sees a large problem, social change, and with limited growth.

How does the argument concerning environmental ethics Aldo Leopold expresses in "The Land Ethic" differ from his argument in "Thinking Like a Mountain"? Answer: Both are utilitarian, but one is ecocentric while the other is anthropocentric. Land ethic says that balance of not destroying land causes more benefit than harm to human, in thinking like a mountain if you kill wolves that eat deer, they eat the grass and wash away the mountain (ecocentric).

Briefly define the ethical obligations of pharmaceutical companies according to DeGeorge ("Intellectual Property and Pharmaceutical Drugs: An Ethical Analysis). Answer: This is a utilitarian argument in that it creates the most benefit, there is an obligation to provide a right to healthcare, and moral utilitarian responsibility to aid.

One of the five objections listed by Arnold and Bustos ("Business, Ethics, and Global Climate Change") to the "free market solution to the environmental problems concerning global climate change" is "the absence of democracy." Briefly state this objection. Answer: There are two parts to this, first there are some countries that don't have democratic institutions set up, not allowing them to vote, and also if we pollute in the US, this can float over to other countries like Canada and Mexico, and they don't get a vote.

What according to Bowie ("Morality, Money, and Motor Cars") are business's moral obligations with regard to the environment? Answer: Businesses don't have an obligation to protect the environment over and above what is required by law; however, businesses do have a moral obligation to avoid intervening in the political arena in order to defeat or weaken environmental legislation as well as an obligation to share their expert knowledge of the cause of environmental harm with the consumers.