When Managers Apply the _____________ Theory of Ethical Decision Making

question 102

Multiple Choice

When managers apply the _____________ theory of ethical decision making, they believe that companies have ethical responsibilities to all members of society.

• A) social contract
• B) stakeholder
• C) stockholder
• D) Midas

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Definitions:

Treasury Stock

Represents shares that were once part of the outstanding shares and have been bought back by the corporation.

Depreciation Expense

An expense recorded to allocate the cost of a tangible asset over its useful life.

Cash Dividend

A cash distribution of earnings by a corporation to its shareholders.

Financing Activities

These activities relate to changes in the size and composition of the equity and borrowings of an entity, reported in the statement of cash flows.