Which of the Following Statements Is True About Ethical Decision

question 21

Multiple Choice

Which of the following statements is true about ethical decision making in business?

• A)Ethical decision making is limited to the type of major corporate decisions with social consequences.
• B)At some point, every worker will be faced with an issue that will require ethical decision making.
• C)All ethical decisions can be covered by economic, legal, or company rules and regulations.
• D)Ethical decision making should not rely on the personal values and principles of the individuals involved.

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Definitions:

Liquidity Ratio

Measures a company's ability to meet its short-term obligations using its most liquid assets.

Profit Margin

A profitability ratio calculated by dividing net income by revenue, expressing the percentage of revenue that translates into net income.

Collection Policy

The procedures and guidelines used by a company to manage and collect accounts receivable.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated as current assets divided by current liabilities.