Which of the Following Statements Is Ethically Questionable

question 1

Multiple Choice

Which of the following statements is ethically questionable?

• A)Effective communication should reflect personal values and company standards of ethical conduct.
• B)Managers should be certain to distinguish their opinions from facts.
• C)Unpleasant ideas should be stated as tactfully as possible to preserve self-esteem of the reader.
• D)Facts can be exaggerated as long as the purpose of the message reflects the reader's best interest.

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Definitions:

LBO

Leveraged buyout. A process in which an investor group buys up a company’s stock using a small amount of equity and borrowing the rest of the money required. The debt is often secured by the firm’s assets. The investor groups are often the firms’ managements, and the company goes from being publicly held to being privately held.

Takeover

The acquisition of one company by another where the acquiring party secures control of the target company.

Merger

The combination of two or more companies into a single entity, often with the goal of achieving operational synergies or market growth.

Maximum Purchase Price

The highest price an investor is willing to pay to acquire a particular asset, often determined by assessing its value through various valuation methods.