An Auto Designer Chooses to Devote His Efforts to Design

question 44

Multiple Choice

An auto designer chooses to devote his efforts to design an automobile that is the safest vehicle possible. He does so because he wishes to save lives and prevent disabling injuries. He believes he and his employer have a duty to provide the public with the safest possible vehicle. The designer's approach to ethical decision-making is best characterized as:

• A) utilitarian.
• B) deontological.
• C) ethically relative.
• D) ethically fundamental.

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Definitions:

Likelihood of Collection

The probability that debts owed to a company will be paid by its debtors.

Materiality Constraint

An accounting principle that states financial information is material if its omission could influence decisions.

Direct Write-Off Method

An accounting method where uncollectable debts are written off to the expense account directly when they are deemed uncollectable.

Accounts Receivable Turnover

A financial metric that measures how efficiently a company collects revenue from its credit sales.