Scenario C

question 52

Multiple Choice

Scenario C. Use the information given below to answer the following three questions:
Two managers, Scott and Adams, at Apex, Inc. are discussing the latest e-mail they have received about how decisions are evaluated and made on the basis of right and wrong at their company. Scott's reaction is, "All this thing needs to say, as far as I'm concerned, is if you don't get busted for it, you're innocent. If you do get caught, you pay the price." Adams, on the other hand, has a very different idea. His response is, "I believe that every individual should take personal responsibility for their behavior. I would like for our organization to integrate that idea into everything we do here at work."
-On the basis of Adam's response, which type of ethics program does he prefer?

• A) Associate-based
• B) Compliance-based
• C) Integrity-based
• D) Systems-based
• E) Consensus-based

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Definitions:

Pro Forma Financial Statements

Financial reports that project the future financial position of a company, based on current data and assumptions.

EAC Methodology

The Equivalent Annual Cost method, used to compare the economic cost of projects with different lifespans by converting their costs into an equivalent annual amount.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives, typically aimed at achieving a specific goal.

Equivalent Annual Cost

A financial analysis tool used to compare the cost effectiveness of two or more projects with differing lifespans, by calculating the annual cost of each.