Companies need to consider a social discount rate
Not what you're looking for?
The second discount rate is known as the social discount rate. It is based on judgments about the collective value that society attaches to a policy. Proponents argue that the social discount rate is preferred because it broadens the preferences considered. In some cases, the social discount rate will factor in the costs and benefits of a program to future generations. Opponents point to the irrationality and difficulty to measure intangible elements like the cost of pollution, or satisfaction, or other factors.
This may boil down to a left brain/right brain dilemma. Some of you are business managers or business-oriented people who usually subscribe to a quantitative focus. Others of you follow a qualitative (not quality) focus and believe that everything can be measured.
Where do you stand on this issue of a social discount rate? Briefly explain why.
Purchase this Solution
Solution Summary
An explanation of the differences in qualitative and quantitative research questions. How these can be applied to the importance of social discount rate, what it is, how it affects companies.
Solution Preview
First the definitions here are incorrect. Quanititative are measurable by figures and verifiable data, qualitiative it more about the personal input or perceptions (qualitative research is observational, quantitative is statistical). I believe that ...
Purchase this Solution
Free BrainMass Quizzes
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.