Which of the Following Statements Would Most People in Business

question 4

Multiple Choice

which of the following statements would most people in business agree?

• A)A corporation's short-run profits will almost always increase if the firm takes actions that the government has determined are in the best interests of the nation.
• B)Firms and government agencies almost always agree with one another regarding the restrictions that should be placed on hiring and firing employees.
• C)Although people's moral characters are probably developed before they get into a business school, it is still useful for business schools to cover ethics, including giving students an idea about the adverse consequences of unethical behavior to themselves, their firms, and the nation.
• D)It is not useful for a large corporation to develop a formal set of rules defining ethical and unethical behavior.Such rules generally can't be applied in many specific instances, so it is better to deal with ethical issues on a case-by-case basis.
• E)"Whistle blowers," because of the courage it takes to blow the whistle, are generally promoted more rapidly than other employees.

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Definitions:

Economic Benefit

The gain received by an entity as a result of an action taken or a decision made, which contributes to the entity's wealth.

Transactions Rationale

The underlying reasons or business logic behind carrying out specific transactions within a company.

Effective Interest Rate

The rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument or a shorter period to the net carrying amount of the financial asset or financial liability.

Bond Issue Costs

Expenses associated with issuing bonds such as underwriting fees, legal fees, and registration fees, which are often amortized over the life of the bond.