Which of the Following Statements Is True About an Ethical

question 51

Multiple Choice

Which of the following statements is true about an ethical business?

• A)It will always be profitable.
• B)It will always satisfy all stakeholders.
• C)It will always survive over the long run.
• D)It will avoid the consequences of unethical behavior.

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Definitions:

Expense

An outflow of money or other resources incurred as a result of the company’s operations to generate revenue, representing the cost of doing business.

Prepaid Insurance

An asset account that represents insurance payments made in advance for future coverage periods.

Insurance Expense

The cost incurred by a company to insure its assets, operations, or liabilities against various risks over a specific period.

Accounts Payable

An entry in financial accounts showing a corporation's duty to reimburse a short-term loan from its creditors or vendors.