Which Example Violates the Ethical Guidelines Concerning Deception

question 14

Multiple Choice

Which example violates the ethical guidelines concerning deception?

• A) Administering shocks without giving participants advanced warning and obtaining consent
• B) Administering shocks even with advanced warning and informed consent
• C) Telling participants that they may receive shocks even though no shocks are administered
• D) Telling participants that they may or may not receive shocks even though no shocks are administered

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Definitions:

Residual Dividend Approach

A method where the firm pays dividends from the residual or leftover equity after paying for all capital expenditures and working capital needs.

Debt/Equity Ratio

A financial ratio that measures the relative proportion of shareholders’ equity and debt used to finance a company’s assets.

Capital Investment

Funds invested in a firm or enterprise for the purpose of furthering its business objectives, including acquiring assets and launching new ventures.

Liquidating Dividend

A payment made by a corporation to its shareholders from its capital rather than its earnings, often signaling the winding down or dissolution of the company.