Scenario C: Aparna and Eli,managers from Different Departments at Greater

question 9

Multiple Choice

Scenario C: Aparna and Eli,managers from different departments at Greater Midwest Credit Union,are discussing the troubling behavior of a credit union employee.Aparna says that it is the responsibility of high-level managers to take steps to prevent legal wrongdoing by punishing offenders.However,Eli believes that every individual should take personal responsibility for his or her own behavior and that everyone needs to understand how to do the right thing.
-In Scenario C,each of the managers tends to be responsible for creating a different ________ in their respective departments.

• A)legal responsibility
• B)ethical climate
• C)sustainable growth
• D)organizational structure
• E)corporate culture

---

Definitions:

Financial Leverage

The use of borrowed money (debt) to amplify potential returns from an investment or project.

Sustainable Growth Rate

The maximum growth rate a company can achieve without having to increase its financial leverage or debt.

Internal Growth Rate

The maximum rate at which a company can expand its operations using only internally generated revenues, without resorting to external financing.

Plowback Ratio

The proportion of earnings retained by a company after dividends are paid, usually to fund growth or pay down debt.