Which of the Following, If True, Strengthens Beatty's Ethical Position

question 5

Multiple Choice

Which of the following, if True, strengthens Beatty's ethical position?

• A) The gift card has no expiration date, so he can wait to use it later, when he has moved to another position in his company where no conflict of interest exists.
• B) The greeting and the gift card were received at his home residence, not at his place of work.
• C) The salesman has just spent $500 of his own money on video game equipment for his children at Best Buy, so he has no immediate reason to use the gift card.
• D) The president of the supplier is Beatty's father-in-law, so the gift is a personal one for his grandchildren.
• E) On checking, Beatty learns that the supplier sent gift cards of lower value to other salespersons in his company.

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with fixed dividends.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument, as stated by the issuer.

EPS Growth Rate

Refers to the rate at which a company's earnings per share (EPS) has grown over a specific period, usually annually, indicating the company's profitability growth.

Rate of Return

The increase or decrease in the value of an investment throughout a certain period, represented as a fraction of the original investment's price.