To Make Sure That Ethical Issues Are Considered in Business

question 51

Multiple Choice

To make sure that ethical issues are considered in business decisions

• A) a company should use a bottom-up approach.
• B) top managers should articulate and model ethical behaviors.
• C) a company should have a no-layoff policy
• D) a company should spend the majority of its operating budget to teach people what is legal and not legal.
• E) a company should hire and promote employees that do whatever it takes to achieve organizational objectives.

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Definitions:

NPV

Net Present Value, a financial metric used to assess the profitability of an investment, calculated as the difference between the present value of cash inflows and outflows.

IRR

Internal Rate of Return is a financial metric used to evaluate the profitability of potential investments, representing the discount rate that makes the net present value of all cash flows from a particular project equal to zero.

Mutually Exclusive

Describes options or projects that cannot both be chosen such that if one is selected, the other must be rejected.

Value Foregone

The potential value lost when choosing one investment or action over another, often considered an opportunity cost.