Which of the Following Is True Regarding Business Ethics

question 47

Multiple Choice

Which of the following is true regarding business ethics?

• A) Business ethics refers to standards of business conduct but does not result in a set of correct decisions.
• B) Business ethics results in a set of correct decisions and does not simply refer to standards of business conduct.
• C) Business ethics produces a list of correct business decisions that all ethical businesses will make so long as the theory of deontology is followed.
• D) Business ethics produces a list of correct business decisions that all ethical businesses will make so long as the theory of rule utilitarianism is followed.
• E) Business ethics produces a list of correct business decisions that all ethical businesses will make so long as the theory of virtue ethics is followed.

Recognize the conditions under which land, buildings, and equipment can or cannot be depreciated for tax purposes.

Grasp the significance of setting bid prices and how it affects the project NPV.

Understand how depreciation and the choice of depreciation method (e.g., CCA) impact project NPV and cash flows.

Analyze initial cash outflows and their components in project valuation.

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Definitions:

Accumulated Depreciation

It refers to the total amount of depreciation expense that has been recorded against an asset over its useful life until the present time.

Fixed Asset Account

An account on the balance sheet representing long-term tangible assets held for business use and not expected to be converted to cash in the near term.

Accumulated Depreciation Account

A balance sheet item representing the cumulative amount of depreciation expense charged against an asset over its useful life.

Book Value

Refers to the net value of an asset as recorded on the balance sheet, calculated as the original cost minus accumulated depreciation and impairment.