Does Ethical Behavior Maximize Profitability

question 30

Multiple Choice

Does ethical behavior maximize profitability?

• A) Yes, there is concrete evidence that ethical behavior maximizes profitability.
• B) No, there is concrete evidence that unethical companies outperform ethical companies.
• C) Although there is no guarantee that ethical behavior pays in the short or long run, there is evidence that the ethical company is more likely to win financially.
• D) There is strong evidence that ethical behavior pays financially in the long run, but not in the short run.

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Definitions:

Balance Sheet

A summary report of a company's financial position, including assets, liabilities, and the equity of its shareholders, at a distinct time.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and profit or loss.

Year-End Closing Process

The Year-End Closing Process involves finalizing a company's financial activities for the year, updating accounts, and preparing financial statements.

Net Income

The final earnings of a corporation once all costs, taxes, and expenses are subtracted from gross revenue.