In a Corporation, Managers Are Often Faced with Ethical Trade-Offs

question 38

True/False

In a corporation, managers are often faced with ethical trade-offs when a certain decision will benefit one group, but harm another.​

---

Definitions:

Times Interest Earned Ratio

A financial ratio that measures a company’s ability to meet its interest obligations based on its earnings before interest and taxes (EBIT).

Default

Failure to fulfill a financial obligation, such as missing a loan repayment.

Debt

An amount of money borrowed by one party from another, often for making large purchases that they could not afford under normal circumstances, which needs to be paid back.

FICA

Federal Insurance Contributions Act; a United States federal payroll tax imposed on both employees and employers to fund Social Security and Medicare.