Which of the Following Is One of the Three "Middle-Of-The-Road

question 45

Multiple Choice

Which of the following is one of the three "middle-of-the-road" guiding principles proposed by business ethicist Thomas Donaldson? 

• A) Firms should try to export its home-country ethics to the global market. 
• B) Firms should not base their ethics on local institutions. 
• C) Firms should be culturally sensitive when conducting business abroad. 
• D) Firms should follow a universal ethical business code regardless of geography.

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Definitions:

Priority Of Claims

Priority of claims refers to the hierarchical order in which creditors and shareholders are paid in the event of a company's liquidation, dictated by legal and contractual obligations.

Corporate Bankruptcy

Corporate bankruptcy is a legal process that allows financially troubled companies to restructure or eliminate their debts under the protection of the bankruptcy court.

Unsecured Creditors

Individuals or institutions that lend money without obtaining specific assets as collateral, ranking behind secured creditors in the event of bankruptcy.

Financial Leverage

Rephrased: Utilizing debt to finance additional assets, with the aim of increasing returns to equity holders, while also increasing financial risk.