A Company That Adopts the Principle of Ethical Relativism in Providing

question 45

Multiple Choice

A company that adopts the principle of ethical relativism in providing guidance to company personnel

• A)bases its standards of what is ethical and what is unethical on the Global Code of Ethical Conduct first developed in 1935 and since subscribed to by the governments of 180 countries.
• B)places itself in a perilous position if it is required to defend these activities to its stakeholders in countries with higher ethical expectations or standards because it has no ethical standards or principles of its own.
• C)has no fair way to judge the ethical correctness of the conduct of company personnel.
• D)has a one-size-fits-all set of ethical standards.
• E)allows each company employee to determine what set of ethical standards to observe.

---

Definitions:

Earnings Per Share

A company's net profit divided by the number of its outstanding shares, indicating the portion of a company's profit allocated to each share of stock.

Dividend Yield Ratio

A financial metric that measures the dividend per share a company pays out to its shareholders relative to its share price, indicating the income return on the investment.

Dividend Yield Ratio

A financial ratio indicating how much a company pays out in dividends each year relative to its share price.

Acid-test Ratio

A liquidity ratio that measures a company's ability to pay off its current liabilities with its quick assets (cash, marketable securities, and accounts receivable).