There Are Many Types of Unethical Business Behavior

question 41

True/False

There are many types of unethical business behavior.One example is where executives provide information that they know is incorrect to banks and to stockholders.It is illegal to provide such information to banks,but it is not illegal to provide it to stockholders because they are the owners of the firm,not outsiders.

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Definitions:

Net Operating Income

Net operating income is the total profit of a company after operating expenses are subtracted from gross revenue but before deducting taxes and interest.

Condensed Income Statements

A simplified financial statement that presents a company's net income and revenue summary over a specific period, omitting detailed line items.

Operating Income

Earnings from a firm's core business operations, excluding deductions of interest and tax.

Gross Profit

The financial metric calculated by subtracting the cost of goods sold from the total revenue, representing the profit made before deducting operating expenses.