An Ethical Issue Is a Problem, Situation, or Opportunity

question 2

Multiple Choice

An ethical issue is a problem, situation, or opportunity

• A)that has no correct answer.
• B)that harms the environment.
• C)requiring society as a whole to choose among several actions that must be evaluated as right or wrong.
• D)requiring an individual, group, or organization to choose among several actions that must be evaluated as right or wrong, ethical or unethical.
• E)requiring an individual, group, or organization to choose between harming consumers or the environment and earning more profits.

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Definitions:

EBIT-EPS Analysis

A tool used to study the effect of financing alternatives on a company's earnings per share and taxes.

Leverage

The strategic use of financial instruments or borrowed capital, such as debt, to increase an investment's potential return.

Profitability

A measure of how efficient a company is at generating profits from its resources, often expressed in terms of margins or ratios.

EBIT

A financial metric called EBIT that calculates a company's profits prior to the deduction of interest and income tax costs, encompassing all other expenses.