From a Stakeholder Point of View, Which of the Following

question 16

Multiple Choice

From a stakeholder point of view, which of the following must be satisfied for a decision to be considered ethical?

• A)The decision should demonstrate virtues reasonably expected.
• B)The decision should result in more benefits than costs.
• C)The decision should not offend the rights of any other stakeholders.
• D)The distribution of benefits and burdens should be fair.
• E)All of the above must be satisfied for a decision to be considered ethical.

---

Definitions:

Fixed Cost

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance, providing predictability but fixed financial commitments.

Break-Even Point

The financial point at which total revenues exactly equal total costs, resulting in neither profit nor loss.

Profitability

An indicator of how effectively a company generates profit from its revenues, often measured by profit margins or return on investment.

Cost

The value of money that has been used up to produce something or deliver a service, and hence is not available for use anymore.