Corporate Managers Who Fail to Give Due Consideration to the Rights

question 10

Multiple Choice

Corporate managers who fail to give due consideration to the rights of employees and other concerned groups in the pursuit of profit are treating these groups as means to the ends of stockholders. This is unjust according to the ____.

• A)financial framework
• B)classical tradition
• C)rights-based ethical framework
• D)stockholder theory

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Definitions:

Indirect Method

A method of computing the net cash provided by operating activities that starts with net income and adjusts it to a cash basis. It is also known as the reconciliation method.

Inventory

Raw materials, work-in-process, and finished goods that a company holds with the intent to sell or use in production.

Wages Payable

An account that records the amounts owed to employees for work performed that have not yet been paid.

Cash Flow

The total sum of cash and cash-like assets moving in and out of a company.