A Company That Wants to Boost Company Stock Prices or Prevent

question 21

Multiple Choice

A company that wants to boost company stock prices or prevent stock prices from falling can engage in which unethical activity?

• A)insider trading
• B)bribery
• C)making false sales forecasts
• D)racketeering
• E)paying phantom employees

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Definitions:

Fixed Manufacturing Overhead

The portion of manufacturing overhead costs that remains constant regardless of the level of production, such as salaries of supervisors and rent of the factory.

Outside Supplier

An external company or individual that provides goods or services to another company.

Contribution Margin

The amount by which sales revenue exceeds variable costs, indicating how much revenue contributes towards covering fixed costs and generating profit.

Outside Supplier

A third-party company or entity that provides products or services to another company, often used when in-house production or provision is not feasible.