Which of the Following Is the First Step in the Ethical

question 13

Multiple Choice

Which of the following is the first step in the ethical decision making process?

• A)Being socialized into the firm's corporate culture
• B)Applying a personal moral philosophy in order to individualize the ethical decision making process
• C)Recognizing that an issue requires an individual or work group to make a choice that ultimately will be judged by stakeholders as right or wrong
• D)Soliciting the opinions of others in a work group or in the overall business in order to gain feedback
• E)Enforcing the firm's ethical standards with rewards and punishment

---

Definitions:

Tax Rates

The percentage at which an individual or corporation is taxed, which can vary based on income levels, jurisdictions, and the type of taxes being calculated.

Dividend Irrelevance

Dividend irrelevance theory suggests that the dividend policy a company follows has no effect on the company’s stock price or its cost of capital.

Transaction Costs

Expenses incurred when buying or selling goods and services, which can include commissions, fees, the spread between buy/sell prices, and other related costs.

Floatation Costs

The total costs associated with a company issuing new stocks or bonds, including underwriting, legal, registration, and other expenses.