How Does a Company's Unethical Behavior Risk Doing Direct Damage

question 71

Multiple Choice

How does a company's unethical behavior risk doing direct damage to a company's creditors?

• A) It could result in diminished business reputation.
• B) It could lead to default on loans due to potential business fallout.
• C) It could result in lower stock prices and lower returns.
• D) It could lead to shunning by customers
• E) It could make recruiting and retaining talented employees difficult.

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Definitions:

Legal Liability

Legal liability involves being responsible under law for a specific action or outcome, often related to damages or restitution.

Limited Liability Company

A company organization that blends the direct taxation features of a partnership or sole proprietorship with the protective limited liability characteristic of a corporation.

Service Business

A type of business that provides intangible products, such as expertise, experience, or access, rather than physical goods.

Alternative

A term used to describe an option or choice among multiple possibilities, often referring to solutions, methods, or investments.