The Making Ethical Decisions Box,"Going Down with the Ship" Addresses

question 98

Multiple Choice

The Making Ethical Decisions box,"Going Down with the Ship" addresses a dilemma worthy of consideration.It describes:

• A)an unethical situation where the business owner's need for capital causes him/her to delay all payments to suppliers for 120 days,forcing several of his close business relationships,out-of-business.
• B)the slow death of a business and how important it is to delay payments,sell-off assets and do everything possible to save a failing business except dismissing employees who need their jobs for survival.
• C)ethical decisions that need to be considered when employees leave a faltering business to start their own,eventually competing against their previous employer.
• D)the unethical and disloyal decision to leave your family business and start your own,taking with you all the family business's trade secrets.

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Definitions:

Cash Price

The amount of money required to purchase a good or service using cash, as opposed to credit terms or financing.

Trade-In Allowance

An amount credited to the buyer by the seller for a trade-in, which is applied to the purchase price of a new item.

Accumulated Depreciation

The total depreciation for a fixed asset that has been charged to expense since that asset was acquired and made available for use.

Cash Price

The price of an item for immediate payment, as opposed to a higher price when paying on credit.