Why Did Citigroup Implement a Statement of Cultural and Ethical

question 46

Multiple Choice

Why did Citigroup implement a statement of cultural and ethical values after being stung by a series of scandals?

• A) A formal statement of the company's values relates to the unobservable but important organizational culture.
• B) A formal statement of values can serve as a fundamental organizational document that defines what the organization stands for.
• C) A formal statement addresses ethical values rather than specific behaviours.
• D) A formal statement is often part of a larger mission statement and therefore is taken for granted.

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Definitions:

Straight-Line Method

An accounting method for calculating depreciation by evenly spreading the cost of an asset over its useful life.

Goodwill Impairment

A write-down of goodwill on the balance sheet when its carrying value exceeds the fair value, indicating that the asset is not as valuable as previously thought.

Consolidated Net Earnings

The total net income of a parent company and its subsidiaries after eliminating internal transactions and distributions among them, reflecting the group's overall profitability.

Amortization

The gradual reduction of the cost or value of an intangible asset over a specified time period, typically for accounting and tax purposes.