The Wasson Widget Co

question 11

Multiple Choice

The Wasson Widget Co. has 1,000 obsolete widgets on hand. These units were produced a year ago at a cost of $10,000. The units could be scrapped for $1,000 or reworked for $2,000 and sold for $5,000. Which alternative is desirable and why?

• A) Scrap, income of $1,000 is higher than the other option
• B) Rework, incremental loss $7,000
• C) Rework, income of $3,000 is higher than the other option
• D) Scrap, incremental loss $9,000

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Definitions:

Public Failing

Visible or widely recognized errors or shortcomings in performance or behavior, especially by individuals in positions of influence or power.

Ethical Leadership

A leadership approach that is guided by respect for ethical beliefs and values, and for the dignity and rights of others.

Acts Courageously

The willingness to face fear, uncertainty, or difficulty by taking bold and principled actions.

Ethical Leaders

Leaders who demonstrate and promote ethical behavior within their organizations through their decisions, actions, and influence on others.