The Issue of Ethics in the Reporting of Income and the Payment

question 5

Multiple Choice

The issue of ethics in the reporting of income and the payment of taxes is a considerable one. The authors state that most MNEs operating in foreign countries tend to follow the general principle of:

• A) "when in Rome, do as the Romans do."
• B) full disclosure to the tax authorities.
• C) maintain a competitive playing field by cheating as much as the local competition, no more, no less.
• D) none of the above

---

Definitions:

Organization

The act or process of structuring or arranging components in a systematic way to achieve goals or maintain order.

Moral Principle

Fundamental beliefs about what is right and wrong that guide an individual's behavior and decision-making.

Reasoning Principle

A fundamental aspect of human thought that involves drawing conclusions or making inferences based on premises.

Pleasure Principle

is a psychoanalytic concept suggesting that people seek pleasure and immediate gratification of needs to avoid pain, guiding the id's desires.