The Chance of Ethical Crises Occurring Is Enhanced If

question 50

Multiple Choice

The chance of ethical crises occurring is enhanced if

• A) the leader defines the corporate culture.
• B) the organization has a weak ethical culture.
• C) the shareholders have no confidence in the CEO.
• D) employees follow the direction of the leader.

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Definitions:

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.

Variable Costs

Costs that change in proportion to the level of goods or services that a business produces.

Profit

The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Variable Cost

A cost that depends on the level of production chosen.