Ethical Decision Making in Business

question 5

Multiple Choice

Ethical decision making in business:

• A) reduces the firm's profits.
• B) requires adherence to implied rules as well as written rules.
• C) is not in the best interests of shareholders.
• D) is less important than good capital budgeting decisions.

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Definitions:

Sale Occurs

The event in which goods or services are transferred from a seller to a buyer for monetary consideration.

Sales Return

Transactions that involve the returning of sold goods by customers, resulting in a reduction of revenue.

Credits

Credits are accounting entries that increase liabilities or equity accounts, or decrease asset or expense accounts.

Sales Returns And Allowances

Purchase returns and allowances from the seller’s perspective. See Purchase return and Purchase allowance, above.