Joe Paid His Subordinate John Less Than John Deserved Because

question 53

Multiple Choice

Joe paid his subordinate John less than John deserved because Joe knew that John needed the job badly. Joe's behaviour is

• A) illegal but not unethical.
• B) unethical but not illegal.
• C) both illegal and unethical.
• D) neither illegal nor unethical.
• E) It is not possible to say without determining how John feels about his pay.

---

Definitions:

Operating Leverage

A measure of how sensitive a company's operating income is to a change in revenue, highlighting the impact of fixed costs on profitability.

Operating Cash Flow

The cash generated from a company's regular business operations, indicating its ability to generate sufficient cash to maintain operations.

Accounting Break-even Point

The point at which total costs and total revenues are equal, resulting in no net loss or gain.