Refer to the Scenario Below to Answer the Following Questions

question 43

Multiple Choice

Refer to the scenario below to answer the following questions.
An Ethical Dilemma (Scenario)
Max Proffit, director of research and development for NexGen Products Company, has learned that a new material has been developed in his department that will help reduce production costs without any accompanying loss in quality. He has discussed the potential savings with his two assistants, Angel Lee and Moe Gaines, as well as the vice-president of product development, Rush Onward. Angel has stated her opposition to the use of the new material because its durability and fire-resistant properties have not been fully tested nor certified by the company's third-party testing laboratory. Moe argues that the initial tests that their R&D department has run indicated minimal problems with both durability and fire resistance. Rush stated that he has been in several meetings lately where the need to increase earnings-per-share has been repeatedly emphasized by the company president. Rush has told Max that a decision has to be made within the week about the use of the new material in NexGen's products.
-Moe Gaines's support in favour of using the new material, despite the fact that it has not yet been certified, may be an indication that he __________.

• A) is operating at the principled stage of moral development
• B) has a weak locus of control
• C) has weak ego strength
• D) holds a socio-economic view of social responsibility
• E) is taking an accommodative approach to social responsibility

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Definitions:

Exchange Ratio

The rate at which one financial instrument or asset can be exchanged for another, often used in mergers and acquisitions to determine the amount of shares to be exchanged.

Theoretical Value

An estimate of an asset's value derived from financial models or formulas rather than its current market price.

Warrant Value

Represents the value of a warrant, which is a financial instrument giving the holder the right, but not the obligation, to buy shares of stock at a specified price before a certain date.

Market Price

The present cost at which a service or asset is available for purchase or sale.