Eduardo, an Account Executive, Has a Difficult Ethical Decision to Make

question 58

Multiple Choice

Eduardo, an account executive, has a difficult ethical decision to make regarding one of his clients. In determining what to do, he knows that

• A)he must not take actions that will be financially detrimental to his employer or his client.
• B)he must be willing to take action that is illegal.
• C)he must determine economic outcomes, consider legal requirements, and evaluate ethical duties.
• D)his decision must not negatively affect his employer's business relationship with the client.
• E)he will need to communicate his decision to his employer's other clients.

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Definitions:

Net Realizable Value

The estimated selling price in the ordinary course of business minus any costs of completion, disposal, and transportation.

Historical Cost

The original monetary value of an asset or transaction, without adjustments for inflation or other factors.

Valuation Method

The approach used to assess the value of an asset, liability, or a business, which can be based on market, income, or cost factors.

Financial Statements

Reports that provide an overview of a company's financial condition, including balance sheets, income statements, and statements of cash flows.