In Order to Create a Climate of Ethical Behavior and Fairness

question 105

Multiple Choice

In order to create a climate of ethical behavior and fairness in a company,managers and supervisors should do all of the following EXCEPT:

• A) ensure that employees are treated equitably.
• B) adhere to clear standards that are seen as just and reasonable.
• C) tell white lies to minimize competition between co-workers.
• D) take actions to develop trust between themselves and employees.

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Definitions:

Stock Dividends Distributable

A portion of a company's earnings decided by the board of directors to be distributed to its shareholders in the form of additional shares.

Retained Earnings

The portion of net earnings not distributed as dividends to shareholders but retained by the company for reinvestment.

Noncumulative Preferred Shares

Type of preferred stock where dividends not paid in a particular year do not accumulate and must be forfeited.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares.