When the Subject of an Investigation Has Been Accused of Misconduct

question 15

Multiple Choice

When the subject of an investigation has been accused of misconduct, establishing a morally acceptable rationalization might allow the accused to reconcile his actions with his conscience. Which of the following is not an example of an acceptable rationalization?

• A) The accused has been unfairly treated by his management.
• B) The accused felt that he needed to get back at someone in the organization.
• C) The accused is a bad person by nature.
• D) The accused engaged in the misconduct for the benefit of others.

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Definitions:

Noncontrolling Interest

A stake in a company owned by minority shareholders that doesn’t give them control over the company's operational and financial decisions.

Noncontrolling Interest

A minority share in a subsidiary that is not enough to exert control, often reflected in the parent company's financial statements as part of equity but separate from the parent's equity.

Consolidated Balance Sheet

A financial statement that combines all the assets, liabilities, and equity of a parent company and its subsidiaries into one document.

Acquisition

The process by which one company purchases most or all of another company's shares to gain control of that company.