Ethical Decision Making by Management Has a Payoff for Shareholders

question 15

Multiple Choice

Ethical decision making by management has a payoff for shareholders in terms of:

• A) improved capital structure.
• B) enhanced firm reputation value.
• C) increased managerial benefits.
• D) higher current dividend payments.

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Definitions:

Buyer

A person or entity that purchases goods or services from another.

Agreement

A mutual understanding or arrangement, typically formalized by a contract, between two or more parties regarding their rights and obligations.

Warranty Of Title

A guarantee provided by a seller to a buyer that they legally own the item being sold and have the right to sell it, free from any claims by others.

Security Interest

A legal claim or lien on property, both real and personal, granted to secure the performance of an obligation, often the repayment of a loan.