Is the issue of ethics different for nonprofits than for-profit companies? Why or why not? Give specific examples in your answer.
What will be an ideal response?
Both nonprofit and for-profit companies deal with ethical issues among their employees. There are almost 2 million private nonprofit charitable and philanthropic organizations in the United States, and charges that their managers have acted in unethical and even illegal ways have grown in the 2010s. For example, many states and the federal government are investigating the huge salaries that the top executives of charitable institutions earn. Unlike for-profit companies, which are required by law to provide detailed reports of their operations to their shareholders, nonprofits do not have shareholders, so the laws governing disclosure are far weaker. As a result, the board and its top managers have considerable latitude to decide how they will spend a nonprofit's resources, and little oversight exists. Ethical issues are involved because some badly run charities spend 70 cents of every dollar on administration costs.
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A. The trustee holds legal title to the property put up as security. B. The buyer agrees to pay the purchase price over a period of time. C. If a buyer defaults, the seller does not have the right to declare forfeiture. D. The lender holds legal title to the property put up as security.
Under current tax laws, most taxpayers will pay a lower tax rate on capital gains than on dividends
Indicate whether the statement is true or false.
The key to locating and defining problems is to probe beneath the superficial symptoms.
Answer the following statement true (T) or false (F)
When a corporation engages in a stock repurchase, each remaining shareholder owns a smaller proportion of the firm
Indicate whether this statement is true or false.