A Local Store,part of a Multinational Retail Chain,has Been Selling

question 22

Multiple Choice

A local store,part of a multinational retail chain,has been selling toys that were recalled over issues of product safety.A store employee,upon noticing this,called the local media and the story was featured in the local newspaper.Which statement is true under a moral leadership model?

• A)The CEO of the multinational chain has no ethical responsibility because store managers are responsible for decisions as to local merchandising.
• B)The Board of Directors of the multinational chain has no ethical responsibility because they have little or no input into the daily operations of the firm.
• C)The local store manager has no ethical responsibility because s/he cannot possibly know what product is on his/her shelf at any point in time.This is the role of the toy department manager.
• D)All of the statements are true.
• E)None of the statements are true.

---

Definitions:

Present Value

A calculation that determines the current worth of a future sum of money or stream of cash flows given a specified rate of return.

Distributable Cash Flows

The amount of cash flow available to be distributed to security holders, often used in the context of REITs and master limited partnerships.

Cash Flow Assessment

The evaluation of how well a company generates cash to pay its debt obligations and fund its operating expenses.

Credit Risk

The risk that a borrower will default on any type of debt by failing to make required payments.