An Ethical Issue Is a Problem, Situation, or Opportunity

question 7

Multiple Choice

An ethical issue is a problem, situation, or opportunity

• A) that harms consumers.
• B) that harms the environment.
• C) that requires society to choose among several actions that must be evaluated as right or wrong.
• D) that requires an individual or organization to choose among several actions that must be evaluated as right or wrong, ethical or unethical.
• E) that requires an individual or organization to choose between harming consumers or the environment and earning more profits.

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Definitions:

Financial Engineering

Creating and designing securities with custom-tailored characteristics.

Securities

Securities are financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

Portfolios

A portfolio containing various types of financial investments, including stocks, bonds, commodities, cash, cash equivalents, mutual funds, and ETFs.

Exposure

The degree to which an investment or portfolio is subject to various risks, such as market, credit, or operational risks.