Sanjaya Was Recently Hired at an Up-And-Coming Firm That Has

question 63

Multiple Choice

Sanjaya was recently hired at an up-and-coming firm that has a history of ethics violations. Which action is best for him to take if he wants to determine whether the firm is now acting ethically?

• A) Observe executives at the company, and see whether they model ethical behavior and demand it of others.
• B) Research the results of the ethics violations. If the perpetrators were fired or jailed, then the rest of the company is sound.
• C) Check the company's mission statement to make sure that it guarantees respect and integrity.
• D) Ignore the alleged ethics violations because there is no one standard of ethical behavior.

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Definitions:

Net Cash Provided

The amount of cash generated by a company, typically from operating, investing, and financing activities, minus cash outflows.

Par Value

The face value of a stock or bond as designated by the issuer, which has little relation to its market value but is important for accounting purposes.

Investing Activities

Financial activities related to the acquisition or sale of long-term assets and investments.

Bonds Payable

Long-term debt securities issued by a corporation or government entity, promising to pay the holder a specified amount of interest over a specified period and to repay the principal at maturity.