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:

Expected Market Rate

The forecasted rate of return anticipated by investors in the financial markets, based on current conditions and future projections.

Risk Premium

The extra return above the risk-free rate that investors require to hold a risky investment.

Reward-To-Risk Ratio

A metric utilized in financial analysis to evaluate the potential returns of an investment against the level of risk incurred to achieve those returns.

Beta

A measure of the volatility, or systemic risk, of a security or a portfolio in comparison to the market as a whole.