The First Step of Ethical Decision-Making Is To

question 23

Multiple Choice

The first step of ethical decision-making is to:

• A)Define the issue
• B)Identify the principles that can be applied
• C)Identify the facts
• D)None of the options are correct.

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Definitions:

Clientele Effect

The theory that a company’s stock price will move according to the demands and preferences of its investors or clientele regarding dividend policies.

Tax-Exempt Institutional

Refers to entities or investment products that do not have to pay federal or state income taxes.

Low Dividend Policy

A corporate practice of distributing minimal portions of the company's earnings to its shareholders as dividends.

High Dividends

Refers to stocks or securities that offer a significant dividend payout in relation to their market price, often viewed as an indicator of a company's potential for long-term growth.