Which of the Following Is Considered as a Violation of Business

question 131

Multiple Choice

Which of the following is considered as a violation of business ethics?

• A) earnings management
• B) repurchase of shares
• C) using the call option on a callable bond when the interest rate is low
• D) paying a high amount of dividends every year

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Definitions:

Privity of Contract

The relationship between parties in a contract that allows them to sue each other but prevents any third party from doing so.

Novation

The act of replacing an existing contract with a new one, wherein all parties agree to make the switch.

Factoring

A financial transaction where a business sells its accounts receivable to a third party at a discount to secure immediate capital.

Assignment

Assignment refers to the transfer of rights or property from one party to another, commonly seen in contracts and legal agreements.