A Company's Strategy Needs to Be Ethical Because

question 34

Multiple Choice

A company's strategy needs to be ethical because

• A)of the dangers that top management will be embarrassed if the company's unethical behavior is publicly exposed.
• B)a strategy that is unethical not only damages the company's reputation,but it can also have costly consequences.
• C)everyone is an ethics watchdog,and somebody is sure to blow the whistle on the company's unethical behavior.
• D)of the risks of getting caught and prosecuted by governmental authorities if an unethical strategy is used.
• E)unethical strategies are inconsistent with or else weaken the corporate culture.

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Definitions:

Additional Shares

Newly issued stock by a company, which increases the total number of shares outstanding and dilutes the ownership percentage of existing shareholders.

Discounted Price

A reduced price from the original selling price, often used to stimulate sales or clear inventory.

Tax-exempt Investor

An individual or entity that is not required to pay taxes on certain income or investments.

High Dividend Payout

A high dividend payout refers to a situation where a company distributes a significant portion of its profits to shareholders in the form of dividends, often indicating a mature company with limited reinvestment opportunities.