Organizations Can Encourage Ethical Behavior By

question 4

Multiple Choice

Organizations can encourage ethical behavior by:

• A) Establishing systems and programs to ensure ethical compliance
• B) Having a CEO that reinforces ethical behavior
• C) Creating an "integrity program" to communicate and reinforce values
• D) All of the above

---

Definitions:

Borrowed Money

Funds that an individual or entity obtains from another party under the condition of future repayment with interest, which can be used for various purposes.

Debt Paying Ability

Debt paying ability indicates an entity's capacity to repay its debt obligations based on its financial situation, including liquidity ratios and income.

Acid-test Ratio

A stringent indicator of a company's liquidity, calculating its ability to cover short-term obligations with its most liquid assets, excluding inventory.

Inventory Turnover

A measure of how often a company's inventory is sold and replaced over a certain period of time, indicating efficiency in inventory management.