Which of the Following Statements Is True of Stakeholders and Ethics

question 19

Multiple Choice

Which of the following statements is true of stakeholders and ethics?

• A) Customers are often regarded as the least important stakeholder group.
• B) Communities, societies, and nations are independent of the effects of the decisions made by companies.
• C) The failure of a company can have catastrophic effects on a community since a general decline in business activity can affect a whole nation.
• D) The results of ethical behavior are loss of reputation and resources, and skilled managers and employees leaving the company.
• E) When making business decisions, managers must exclusively consider the claims of stockholders.

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Definitions:

Current Ratio

A financial ratio that gauges a firm's capacity to meet its short-term debts or obligations due within the next year.

Acid-Test Ratio

A financial metric that measures a company's ability to pay off its current liabilities with its quick assets (cash, marketable securities, and receivables).

Working Capital

Current assets less current liabilities.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its short-term assets.