Because Top Managers May Be More Insensitive to Ethical Issues

question 2

Multiple Choice

Because top managers may be more insensitive to ethical issues due to their focus on financial performance, the FSGO guidelines suggest that ethics officers report to the _____ instead.

• A)stock market
• B)board of directors
• C)middle managers
• D)customers
• E)stakeholders

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Definitions:

Financial Risk

The possibility of losing money on an investment or business venture, often due to changes in the financial markets or failure to meet debt obligations.

Financial Risk

The possibility of losing money on an investment or business venture, often associated with the potential for financial loss due to market volatility, credit risk, and liquidity risk.

Debt Ratio

A financial ratio that measures the extent of a company's leverage, calculated as total debt divided by total assets.

Interest Expense

The cost incurred by an entity for borrowed funds, which can include payment of interest on bonds, loans, convertible debt, and lines of credit.