An Ethical Screen Is Used Primarily When Facing a Decision

question 27

Multiple Choice

An ethical screen is used primarily when facing a decision that

• A)is in opposition to the organizational culture.
• B)affects the majority of employees within the firm.
• C)is not obviously ethical or blatantly unethical.
• D)is widely recognized as criminal behavior.

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Definitions:

Temporary Investments

Investments not intended to be held for a long term, such as stocks or bonds, purchased with the intention of selling in the near future.

Accounts Receivable

Money that is owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Quick Ratio

A liquidity measure that indicates a company’s ability to pay its current liabilities without relying on the sale of inventory, calculated as (current assets - inventories) / current liabilities.

Liability Likelihood

Refers to the probability that a company will be responsible for payment due to a debt, claim, or lawsuit.