Discuss How the Goal of Profit Maximization Is Affected by Ethical

question 27

Essay

Discuss how the goal of profit maximization is affected by ethical considerations. What incentives are there for managers to manipulate accounting data in unethical ways in order to increase profits?

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Definitions:

Cash Dividends

Payments made by a corporation to its shareholder members from its earnings or reserves.

Net Cash

The amount of cash a company has on hand after all debts and liabilities have been paid.

Investing Activities

Financial actions related to the acquisition and disposal of long-term assets and other investments not considered as cash equivalents.

Cash Dividends

Dividends paid to shareholders by a corporation, ordinarily from its profit earnings.