A Company That Expects Its Managers to Behave Ethically to the Degree

question 36

Multiple Choice

A company that expects its managers to behave ethically to the degree that they stay within the law, but no more, is acting with a(n) ________ approach to social responsibility.

• A)accommodative
• B)proactive
• C)defensive
• D)obstructionist
• E)offensive

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Definitions:

According to GAAP

As per Generally Accepted Accounting Principles, which are a set of accounting standards and procedures used in the United States.

Financial Accounting Reports

Formal documents that communicate an organization's financial performance and position to external stakeholders, including income statements and balance sheets.

GAAP

Generally Accepted Accounting Principles; a set of rules and standards for financial reporting used in the United States.

Prime Costs

The combined total of direct labor and direct materials cost incurred in the manufacturing of products.