Sonya, Store Manager for Wholesome Foods, Learns That the Store's

question 7

Multiple Choice

Sonya, store manager for Wholesome Foods, learns that the store's refrigeration system failed overnight, and, for several hours, the cold meat and produce were exposed to temperatures that were a few degrees higher than required by company standards. She decides to discard the food, at cost of many thousands of dollars, because she believes it is the right thing to do, and the health of consumers is at stake. Sonya uses ________ as an ethical system to make her decision.

• A) universalism
• B) egoism
• C) utilitarianism
• D) relativism
• E) conventionalism

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Definitions:

Liquidity

A company's ability to meet its short-term obligations using its most liquid assets, indicating financial health.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

Working Capital

Working capital is the difference between a company's current assets and current liabilities, indicating its short-term financial health and operational efficiency.

Long-Term Liquidity

Measures a company's ability to meet its long-term financial obligations, indicating financial health over a prolonged period.