In the Context of Ethics Programs in Organizations, Programs Tend

question 78

Multiple Choice

In the context of ethics programs in organizations, programs tend to be better integrated into operations, thinking and behavior when:

• A) every employee has signed the code of ethics.
• B) top management has a personal commitment to responsible ethical behavior.
• C) employees have seen top managers punished for their wrongdoings.
• D) managers use punishment to motivate employees to "be good".
• E) managers use humiliation and bullying to prevent bad behavior.

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Definitions:

Cost of Debt

The effective rate that a company pays on its borrowed funds from loans or bonds.

Cost of Equity

The return a company must offer investors to compensate for the risk of investing in its stock, usually estimated using models like the Capital Asset Pricing Model (CAPM).

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, and typically pays dividends before common stock.

Common Stock

Shares of ownership in a corporation that entitle the shareholder to vote at shareholder meetings and receive dividends.