Suppose Your Company Is Thinking About How It Can Improve

question 21

Multiple Choice

Suppose your company is thinking about how it can improve employee benefits. The company feels upper management should receive the highest salaries since they have to make more risky business decisions while employees on the shop floor should receive the best healthcare since they accept the most risk physically. From this viewpoint, the company is taking the ________ approach to ethics.

• A) common good
• B) fairness
• C) rights
• D) utilitarian

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Definitions:

Spread

The difference between two values or rates, commonly used in financial contexts to describe the gap between bid and ask prices or the yield differences between bonds.

Secondary Equity Offering

A process where a company issues additional shares to the public after the initial public offering (IPO) to raise more capital.

Rights Offering

A method by which companies raise capital, by giving existing shareholders the right to buy new shares at a discount before they are offered to the public.

Stock Price

The current market price at which a share of a company is bought or sold, reflecting the market's perception of its value at any given time.