Which of the Following Statements Describes the Decision Guidelines for an Ethical

question 136

Multiple Choice

Which of the following statements describes the decision guidelines for an ethical decision?

• A) Identify the ethical issue, specify alternatives, calculate the gain or loss on each alternative solution, and choose the solution with the smallest gain or highest loss.
• B) Identify the ethical issue, specify alternatives, consult the Code of Professional Conduct, and choose the solution which has the greatest benefit to the largest number of people.
• C) Identify the ethical issue, specify alternatives, assess the possible outcomes, and make the decision.
• D) Identify the ethical issue, consult an external auditor, and make the decision.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, often derived from the company's profits.

Stock Premium

The amount by which the selling price of a share exceeds its par value, also known as share premium.

Other Income

Revenues earned from activities that are not related to a company's primary business operations.

Income Statement

A financial statement that shows a company's revenues, expenses, and profit or loss over a specific time period.