Scenario A

question 16

Multiple Choice

Scenario A. Your organization faces an ethical question. There has been a problem with your accounting process that has resulted in lower profits being reported than were actually earned. You are attending a meeting where senior management is deciding how to handle the situation. The people at the table have varying views of what action to take and why.
John wants to report the error immediately because he believes that it is the right thing to do and that will keep them all out of jail.
Bruce wants to report the error because it is the honest thing to do.
After hearing his colleagues' opinions, Carlos says he wants to report the error as well because he believes the group is right.

-Bruce is using which ethical system for his decision making?

• A)Universalism
• B)Egoism
• C)Utilitarianism
• D)Relativism
• E)Virtue ethics

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Definitions:

Timeliness

The importance of making or delivering something within an expected time frame for it to be relevant or useful.

Decision Making

is the process of selecting a course of action from multiple alternatives to achieve a specific objective.

Liabilities

Financial obligations or debts that a company owes to outside parties, including loans, accounts payable, mortgages, and accrued expenses.

Stockholders' Equity

The equity capital that is contributed by shareholders plus the retained earnings of the company. It represents the residual value of assets after liabilities have been settled.