International Food Services (IFS) Has a Contract with the Marines

question 13

Multiple Choice

International Food Services (IFS) has a contract with the Marines to supply meals for its troops in Iraq and other foreign assignments. As a means of increasing profits, IFS has used substandard ingredients in these meals and has consistently lied about this practice during quality investigations by the Marines. Who is ultimately responsible for the corporate climate that resulted in this wrongdoing?

• A) the director of food service for IFS
• B) the board of directors of IFS
• C) the employees directly involved in the wrongdoing
• D) the head of contract services for the Marines

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Definitions:

Payback Period

The length of time that it takes for a project to fully recover its initial cost out of the net cash inflows that it generates.

Salvage Value

The anticipated value of an asset at the conclusion of its effective life.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the strategic goals of an organization.

Cash Poor

A situation in which an individual or entity has assets but lacks readily available cash to meet immediate spending needs.