In a Business Setting, Which of the Following Practices Is

question 35

Multiple Choice

In a business setting, which of the following practices is most likely to be considered as unethical?

• A)Allowing managers within a company to act in accordance with rights theories
• B)Promoting employees who engage in ethical behavior and penalizing those who do not
• C)Hiring independent auditors to ensure that subcontractors used by the company are living up to its code of conduct
• D)Making sure that key business decisions make good economic sense irrespective of their social costs and risks
• E)Informing prospective employees about the ethical climate in the organization

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Definitions:

Hedging Instrument

A financial contract used to offset potential losses or gains that may be incurred by a companion investment.

Forward Contract

A financial agreement between two parties to buy or sell an asset at a specified future time at a price agreed upon today, not traded on an exchange.

Purchase Order

A formal document issued by a buyer to a seller, authorizing the purchase of goods or services as specified at agreed-upon terms.

Fair-Value Hedge

A hedge that protects against changes in the fair value of an asset, liability, or firm commitment that is attributable to a particular risk.