Which scenario is an example of a true ethics dilemma?
A. The Tipton Company considers running advertisements to publicize the contribution it made to a national charity that offers tutoring to low-income children.
B. Employees at Spiffy Hair Salon ask management if they can set up a booth at an inner-city street fair to give free haircuts to anyone who needs one.
C. Sure-Good Soup Company is thinking about using more expensive organic vegetables in its products to promote consumer health, even though company profits might be reduced.
D. At the request of many customers, Maxim Company considers pulling advertising from a radio talk show that endorses "fringe" conspiracy theories.
Answer: C
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If a company uses the allowance method to account for bad debts, when will the company's owners' equity decrease?
a. At the date a customer's account is written off b. At the end of the accounting period when an adjusting entry for bad debts is recorded c. At the date a customer's account is determined to be uncollectible d. When the accounts receivable amount becomes past due
Tomorrow's leading companies will succeed by seeking out unoccupied positions in uncontested market spaces. Such strategic moves, termed ________, create powerful leaps in value for both the firm and its buyers, creating new demand for new products
A) customer lifetime value B) customer equity C) value innovation D) market segmentation E) customer intimacy
Which of the following is a good example of a change based on “fit”?
a. A company works to empower employees to increase morale and institutes a more rigid supervisory structure to manage costs b. The organization hires brilliant employees to fill gaps in low-level jobs to have the best employees at every level c. The organization has traditionally valued a relaxed and informal workplace to foster creativity, and the HR department enforces a strict dress code policy to increase professionalism and the organization’s reputation d. A company moves to an open floor plan and also works to revise formal systems to include more collaboration and teamwork in decision making
A cost-based transfer price considers the cost of producing the goods when determining the price
Indicate whether the statement is true or false