When Making a Business Decision, Those Responsible for Making It

question 1

Multiple Choice

When making a business decision, those responsible for making it sometimes focus on short-run profit maximization in preference to ethical considerations. Subject to analysis according to the IDDR framework, this decision would most likely

• A)fulfill corporate and individual values without regard to ethics.
• B)find support under a duty-based ethical standard.
• C)withstand scrutiny under an outcome-based ethical standard.
• D)not survive under any ethical standard.

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Definitions:

Remeasurement

The process of converting foreign currency amounts into a functional currency using exchange rates that reflect changes in market conditions.

Translation

The process of converting the financial statements of a foreign subsidiary into the reporting currency of the parent company, according to appropriate accounting standards.

Purpose

The underlying motive or reason for the creation or existence of something.

Translation Adjustment

An adjustment in the financial statements to account for gains or losses that arise from converting foreign currencies into the reporting currency.