Which Question Could Lead to the Making of a Poor

question 8

Multiple Choice

Which question could lead to the making of a poor ethical decision?

• A) Would this pass the morning-after test?
• B) How would our earnings be affected?
• C) What is your real motivation in making this decision?
• D) Who will be affected by your decision and in what way?
• E) Would your decision withstand the scrutiny of employees, customers, colleagues, and the general public?

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Definitions:

Cost Of Goods Sold

The immediate expenses related to the manufacturing of products a company sells.

Ending Inventory

The sum of the value of products ready to be sold at the conclusion of a financial period.

Inventory Turnover Rate

A measure of how often a company sells and replaces its stock of goods within a period, indicating the efficiency of sales and inventory management.

Net Income

The net income of a business following the deduction of all expenditures and taxes from its total revenue.