A Multinational Corporation That Adopts the Naive Immoralist Approach to Ethics

question 78

Multiple Choice

A multinational corporation that adopts the naive immoralist approach to ethics will most likely

• A) lack cultural sensitivity.
• B) demonstrate moral imperialism.
• C) be highly ethical in its business in a host nation irrespective of the ethical standards followed by other corporations in that host nation.
• D) believe that, in a host country, any action is ethically justified if everyone is doing it.
• E) demonstrate a high degree of ethnocentrism.

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Definitions:

Amortization

The gradual reduction of a debt or the spreading out of capital expenses for intangible assets over a specific period of time.

Bond Payable

A bond payable is a long-term liability where a borrower agrees to pay back a fixed amount of funds at a future date, along with periodic interest payments.

Interest Expense

The cost incurred by an entity for borrowed funds, represented as interest payments on debts such as loans, bonds, or lines of credit.

Discount

The excess of the face amount of bonds over their issue price or the excess of the par value of stock over its issue price.