Which of the Following Is Not an Example of an Ethical

question 40

Multiple Choice

Which of the following is not an example of an ethical dilemma?

• A) Do I allow some employees to work from home, and not others?
• B) Do I offer a bribe to land a contract?
• C) Do I write a check on a closed account?
• D) Do I fire an employee to avoid paying her a big bonus?
• E) Do I fire a whistle blower for exposing the company's wrongdoing?

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Definitions:

Reinvestment Assumption

An assumption in finance that future cash flows from an investment will be reinvested at a constant rate.

Payback Period

The length of time it takes for an investment to generate cash flows sufficient to recover its initial cost, often used to evaluate the profitability of an investment.

Time Value

The concept that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

Payback Period

The length of time required for an investment to recover its initial outlay in terms of profits or savings.