On an Organizational Level,the Key Issue in the Parmalat Case

question 44

Multiple Choice

On an organizational level,the key issue in the Parmalat case is:

• A)The influence of moral intensity on ethical decision making
• B)The influence of ethical leadership on accounting and auditing
• C)The role of ethical leadership and corporate governance in the accounting fraud
• D)The role of professional skepticism and moral intensity in corporate governance and accounting fraud

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Definitions:

Short Run

A period in economics during which some factors of production and costs are variable, while others remain fixed.

Long Run

In economics, a period in which all factors of production and costs are variable, allowing for full adjustment to changes.

Profit

The financial gain achieved when the amount earned from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Loss

An economic condition where expenses exceed revenues, resulting in negative profit.