Which of the Following Statements About the Ethical Climate of Business

question 55

Multiple Choice

Which of the following statements about the ethical climate of business is false?

• A) Greedy corporate executives are, in part, to blame for the rash of corporate scandals that occurred not too long ago.
• B) Unethical business behavior can have a negative impact on our economy.
• C) The Sarbanes-Oxley Act strives to improve the overall quality of corporate reporting.
• D) The Robinson-Patman Act strives to improve the overall quality of corporate reporting.
• E) Corporate scandals have served as the accounting profession's wake-up call to pay increased attention to ethical issues in the conduct of business.

---

Definitions:

Financing Activities

Transactions involving raising capital, repaying investors, and paying dividends as part of a company's capital structure management.

Net Cash

The amount of cash available after all cash inflows and outflows have been accounted for, often used in the context of operating, investing, and financing activities.

Bonds Payable

A financial liability representing the amount a company owes to holders of its issued bonds, typically repayable at a future date.

Cash Dividends

A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders in the form of cash.