The Johnson & Johnson Credo

question 74

Multiple Choice

The Johnson & Johnson Credo

• A) was a response to the Tylenol incident.
• B) proved ineffective when the company needed to act in the Tylenol crisis,which was a clear lesson to other companies to update similar documents.
• C) was copied by all other pharmaceutical companies.
• D) offers an extremely detailed description of potential problems for the company.
• E) has guided the firm since it was written in the 1940s.

---

Definitions:

Boot

Additional value or cash that balances the value of the assets being traded in a barter or exchange transaction.

Fair Market Value

Fair Market Value is the estimated price at which an asset would change hands between a willing buyer and seller, neither being under compulsion to buy or sell and both having reasonable knowledge of the relevant facts.

Book Value

The value of an asset according to its balance sheet account balance, calculated by subtracting accumulated depreciation from the asset's original cost.

Boot

Additional cash or property included in a transaction to even out a trade or exchange of dissimilar assets.