How Do Strong Ethical Values Benefit a Firm

question 47

Multiple Choice

How do strong ethical values benefit a firm?

• A) They lay the groundwork for a quick increase of profits and short-term success.
• B) They serve as the guardrails put in place to keep the company on track when pursuing its mission.
• C) They provide strong public relations, which can either benefit or hinder competitive advantage.
• D) They emphasize benefiting employees by significantly increasing profit.

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Definitions:

Zero-Coupon Bond

A debt security that does not pay interest (coupon) during its life but is traded at a deep discount, offering a profit at maturity when the bond is redeemed for its full face value.

Market Price

Market Price is the current price at which an asset or service can be bought or sold in a competitive marketplace.

Treasury Bond

A long-term, interest-bearing security issued by the U.S. government, considered one of the safest investments due to government backing.

Par Value

The face value of a bond or stock as stated by the issuing company, which does not necessarily match its market value.