Which of the Following May Prevent the Creation of a Business

question 82

Multiple Choice

Which of the following may prevent the creation of a business climate conducive to unethical behavior?

• A) Excessive emphasis on short-term revenues
• B) Failure to establish a written code of ethics
• C) A desire for "quick fix" solutions to ethical problems
• D) Consideration of ethics solely as a legal issue or a public relations tool
• E) Willingness to take an ethical stand that may impose financial costs

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Definitions:

Subchapter S Corporation

A form of corporation in the United States that meets specific Internal Revenue Code requirements, allowing it to be taxed as a pass-through entity, thus avoiding double taxation.

Shareholders

Individuals or entities that own one or more shares of stock in a company, and therefore have a financial interest in its performance.

Cooperative

Organization whose owners join forces to collectively operate all or part of the functions in their business.

Joint Venture

A business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity, with all parties sharing the profits, losses, and control of the business.