When Faced with an Ethical Conflict, a Manager Should Always

question 139

Multiple Choice

When faced with an ethical conflict, a manager should always

• A) ask the boss what to do, then do it without question.
• B) consider only what is best for the company.
• C) look at which decision will make the stockholder the most money today.
• D) worry only about what the law has to say, then take legal action because it will produce the least public outcry.
• E) think about his or her own ethics; the company's ethics; and the interest of employees, stockholders, and customers.

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Definitions:

Rate of Return

The gain or loss of an investment over a specified period, expressed as a percentage of the investment's cost.

Normally Distributed Returns

A pattern in the investment world where the returns of a financial instrument are symmetrically distributed around the mean.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion in a set of data points.

Risk-free Asset

An investment that is assumed to have no risk of financial loss, typically represented by government bonds.