An Audit Conducted at Trigger University Revealed Wasteful Spending of $8590

question 96

Multiple Choice

An audit conducted at Trigger University revealed wasteful spending of $8590 on hotel rents, banquets, and dining at luxury hotels.Following this, the university president was fired and fewer government contributions were made to many of the school's funds.Staff members who were disturbed by this crisis chose to leave the university.This example illustrates:

• A)universities are as corrupt as corporate companies.
• B)the carelessness of the board of trustees in guarding the university's funds.
• C)the interdependence of responsibilities for ethical decision making.
• D)a failure to identify issues.
• E)a lack of information needed to make ethical decisions.

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Definitions:

Reasonable Commercial Standards

A set of practices that are considered acceptable and customary in a particular industry or line of business.

Fair Dealing

A principle requiring parties, especially in financial transactions or fiduciary relationships, to act in an honest and open manner without taking unfair advantage.

Substantially Impair

To significantly diminish or weaken the value, function, or condition of something.

UCC Specifications

Standards and rules developed under the Uniform Commercial Code that govern commercial transactions within the United States.