Which of the Following Is Not a Consequence of Poor

question 30

Multiple Choice

Which of the following is not a consequence of poor ethical choices by a company?

• A)Loss of reputation
• B)Loss of earning power
• C)Additional regulation
• D)All of the above are consequences of poor ethical choices.

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Definitions:

Derivative Suit

A lawsuit brought by a shareholder on behalf of a corporation against a third party, often the corporation's executives or directors, claiming breach of duty.

Treasury Stock

Shares that were issued and later reacquired by the issuing company, held in the company's treasury and not actively traded.

Authorized Shares

The maximum number of shares that a corporation is legally allowed to issue, as specified in its articles of incorporation.

Accountability

The obligation of an individual or organization to account for its activities, accept responsibility for them, and to disclose the results in a transparent manner.