After a Few Years of Being in Business, Employees Who

question 213

Multiple Choice

After a few years of being in business, employees who worked for a start-up software company noticed that the owner overlooked certain questionable actions of high billing associates, versus other employees who worked hard but only brought in an average number of new clients each month. With respect to what you learned in this chapter about the ethical behavior of many Americans, which of the following statements applies here?

• A) This story indicates that moral absolutes are very prevalent today in business settings.
• B) The owner will continue to operate this way until someone blows the whistle.
• C) We cannot expect people in the U.S. to all follow similar ethical patterns because there are too many cultures to deal with. Businesses are no different.
• D) As is often the case today, some leaders will look at each situation individually when making value judgments.

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Definitions:

Long-Term Supply Agreements

Contracts between companies and their suppliers to provide goods or services over an extended period, often to secure pricing or ensure supply.

Cash Flow Activities

Financial transactions and events that affect the inflow and outflow of cash for a company.

Statement of Cash Flows

A financial report that summarizes the amount of cash and cash equivalents entering and leaving a company, revealing how a company raises and spends money.

Current Assets

Holdings that are planned to be turned into cash, sold off, or consumed in the span of one year or over the course of the operating cycle, if it extends beyond a year.