In Evaluating an Ethical Problem, Managers Can Use Which of the Following

question 106

Multiple Choice

In evaluating an ethical problem, managers can use which of the following tests to determine the most ethical response?

• A) three questions test
• B) whistle-blowing test
• C) social responsibility test
• D) social contract test

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Definitions:

Call Option

A finance-related agreement that allows the buyer the choice, yet not the duty, to purchase an equity, debt instrument, commodity, or another type of asset at an agreed-upon price within a set period.

Expiration

In finance, expiration refers to the date on which a derivative contract (such as options or futures) ceases to exist and settles between the contracting parties.

Arbitrage Opportunity

The chance to buy an asset at a low price in one market and simultaneously sell it at a higher price in another, realizing a profit with no risk.

American Call Option

An American call option is a financial contract that gives the holder the right, but not the obligation, to buy an asset at a specified price before the option expires.