Which of the Following Statements Best Explains the "Carrot-And-Stick" Approach

question 56

Multiple Choice

Which of the following statements best explains the "carrot-and-stick" approach of the U.S Sentencing Commission Guidelines?

• A)Nonprofits are exempted from fines.
• B)Quick­responding reactive organizations are rewarded.
• C)Lower fines are imposed on companies that take proactive steps to prevent unethical behavior.
• D)Companies are asked to emphasize just one area of ethical behavior.
• E)Organizations accused of unethical behavior are excused if the management was unaware.​

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Definitions:

Debt-Equity Ratio

Calculating a corporation's financial leverage involves dividing total liabilities by the equity of shareholders.

Net Fixed Assets

Net fixed assets refer to the total value of a company's property, plant, and equipment minus depreciation, representing the actual value of company's long-term assets being used in operations.

Dividend Payout Ratio

The percentage of a company's earnings that is distributed to shareholders in the form of dividends.

Debt-Equity Ratio

A ratio enumerating the financial strategy involving the use of equity and debt for asset financing.