To Make Sure That Ethical Issues Are Considered in Business

question 53

Multiple Choice

To make sure that ethical issues are considered in business decisions:

• A) companies should eliminate the principal-agent approach.
• B) companies should have a no-layoff policy.
• C) top managers should articulate and model ethical behaviors.
• D) top managers should generously grant stock options.
• E) companies should hire and promote employees with a strong focus on economic gains.

---

Definitions:

Taxes

Obligatory charges imposed by the government on the earnings of employees, profits of companies, or included in the prices of various goods, services, and transactions.

Income Tax

A tax levied by governments on individuals or entities based on their income or profits.

Taxable Income

The amount of income subject to taxes, after deductions and exemptions, according to the tax laws governing the taxpayer.

Tax Rate

The percentage at which an individual or corporation is taxed by the government on income, property, or sales.