A Firm Agrees to Accept Payments on a $1,000,000 Loan

question 109

Multiple Choice

A firm agrees to accept payments on a $1,000,000 loan with a fixed interest rate of 8% in exchange for making the payments on a loan with floating rate payments based on LIBOR. Payments are interest only with principal due in 10 years. The firm will benefit

• A) if LIBOR falls.
• B) if LIBOR rises.
• C) if Libor remains unchanged.
• D) if LiIBOR fluctuates randomly.

Recognize the impact of gender and personality traits on the use of unethical tactics.

Acknowledge situational influences on unethical conduct.

Understand the influence of group and organizational norms on ethical behavior.

Define ethics and understand its application in various scenarios.

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Definitions:

Test-Retest Reliability

A measure of consistency where the same test is administered to the same group of people at two different points in time, and the scores are compared.

Experimenter Effects

Unintended changes in study participants’ behavior due to cues that the experimenter inadvertently conveys.

Representative Sample

A subset of a population that accurately reflects the members of the entire population.

Diverse Population

A group of individuals that vary in characteristics such as race, ethnicity, socioeconomic status, and cultural background.