It Is Much Easier for Managers to Oppose Unethical Practices

question 65

Multiple Choice

It is much easier for managers to oppose unethical practices when there is strong and ________ support for such opposition and the standards for unacceptable behavior are ________.

• A) explicit; ambiguous
• B) implicit; ambiguous
• C) explicit; clear
• D) implicit; clear

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Definitions:

Financial Leverage

The use of borrowed funds to increase the potential return on an investment.

Shareholder Leverage

The use of borrowed funds by shareholders to increase their potential returns from an investment.

Operating Leverage

A measure of how revenue growth translates into growth in operating income due to fixed costs in a company's business model.

Tax Rate

The percentage at which an individual or corporation is taxed by the government on their income or profits.