"Is the Proposed Action Legal? If Yes,does the Proposed Action

question 30

Multiple Choice

"Is the proposed action legal? If yes,does the proposed action maximize shareholder value? If yes,is the proposed action ethical? If no,would it be ethical to take the proposed action?" These four questions,which managers of all organizations should ask when confronted with a decision on an action,form the basis of

• A)Maslow's hierarchy of needs.
• B)the stakeholder's value statement.
• C)Frank Gilbreth's code of ethical conduct.
• D)Bagley's ethical decision tree.
• E)the Sarbanes-Oxley Act of
• 2002.

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Definitions:

Other Expenses

Costs that do not directly relate to the main business activities, such as administrative and organizational expenses.

Unrealized Loss Account

An account that reflects losses which have occurred on paper due to changes in market values but have not been actually realized through a transaction.

Short-Term Stock Investments

Investments in stock intended to be held for a short duration, typically less than one year, for earning a quick profit.

Fair Value

The estimated market value of an asset or liability, based on current prices in an active market.