A Corporate Culture Founded on Ethical Business Principles and Socially

question 71

Multiple Choice

A corporate culture founded on ethical business principles and socially approved values

• A)virtually guarantees that a company will be (or soon become)the acknowledged industry leader because of the ethical and socially approved manner in which its business is being conducted.
• B)doesn't necessarily impact a company's long-term strategic success favorably or unfavorably.
• C)does more to detract from a company's chances for strategic success and market leadership than to help it.
• D)is a positive force underlying a company's long-term financial success and reduces the likelihood of lapses in ethical and socially approved behavior that can damage the company's reputation.
• E)is seldom more than window-dressing and is generally regarded by customers, suppliers, employees, shareholders, and society at large as nothing more than good public relations.

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Definitions:

Matching Principle

An accounting principle that requires expenses to be matched with the revenues they helped to generate in the same period.

Amortization

The gradual reduction of a debt over a period of time or the spreading out of capital expenses related to intangible assets over their useful life.

Matching Principle

An accounting principle that dictates expenses should be recognized in the same period as the revenues they helped generate.

Depletion

The accounting process of allocating the cost of natural resources over their productive life, used in industries like mining, timber, and oil extraction.