Which of the Following Is True of Organizational Misconduct

question 32

Multiple Choice

Which of the following is true of organizational misconduct?

• A) It is defined as the misconduct performed by individuals on behalf of an organization.
• B) It is generally not influenced by an organization's "tone at the top."
• C) It is perpetrated by an organization's rivals or competitors to hinder the growth or success of its business.
• D) It is perpetrated by the lower-level management out of loyalty to the organization.

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Definitions:

Adjusting Entry

An accounting record made to update the financial statements to reflect transactions that have occurred but are not yet recorded.

Interest Expense

The cost incurred by an entity for borrowed funds, usually presented as an expense in the income statement.

Times Interest Earned Ratio

A metric that measures a company's ability to meet its debt obligations by comparing income before interest and taxes to interest expenses.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue, representing the company's bottom line.