Conflicts of Interest Exist When Employees Must Choose Whether to

question 30

Multiple Choice

Conflicts of interest exist when employees must choose whether to

• A)advance their own personal interests, those of the organization, or those of some other group.
• B)advance the interests of the organization or those of society.
• C)communicate in ways that decieve, manipulate, or conceal facts in order to harm others.
• D)carry out an assignment they perceive to be unethical.
• E)report an unethical coworker to outside authorities.

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Definitions:

Margin of Safety

The difference between actual sales and the break-even point, used to assess the risk of loss from declining sales.

Fixed Costs

Costs that do not vary with the volume of production or sales, such as rent, salaries, and insurance premiums.

Variable Costs

Expenses that change in proportion to the amount of goods produced or the volume of sales, including labor and materials.

Operating Leverage

Operating leverage is a measure of how revenue growth translates into growth in operating income, highlighting the scalability of a company’s business model.