Which of the Following Situations Would MOST Likely Raise an Ethical

question 5

Multiple Choice

Which of the following situations would MOST likely raise an ethical issue with respect to proposals?

• A) A payroll-processing firm sends an unsolicited proposal to a doctor's office proposing use of the firm to manage the office payroll.
• B) A doctor asks the sales representative for a payroll-processing firm to submit a proposal to manage payroll for the doctor's office.
• C) A nonprofit agency's board member proposes to the executive director that she will conduct teambuilding workshops for the agency's staff for half of her normal fee.
• D) The executive director of a nonprofit agency asks a human resources consultant to propose a series of teambuilding workshops for the agency's staff.

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Definitions:

Total Stockholders' Equity

The total net value of a company as determined by subtracting its total liabilities from its total assets, representing ownership interest.

Stockholder

An individual or entity that owns shares in a corporation's stock, giving them a claim on parts of the corporation’s assets and earnings.

Shares

Units of ownership interest in a corporation or financial asset that provide for an equal distribution in any profits, if any are declared, in the form of dividends.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities; also known as shareholder's equity.