The Enron company committed major accounting fraud by hiding hundreds of millions of dollars of debt. As a result, many shareholders lost substantial savings. Identify three norms in the Marketing Ethics Code that Enron violated
What will be an ideal response?
Enron violated the three norms of the Marketing Ethics Code: do no harm, foster trust in the marketing system, and embrace ethical values.
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Management's regular assessment of its internal controls is called risk assessment
Indicate whether the statement is true or false
Budgets facilitate congruence between organizational and personal goals
Indicate whether the statement is true or false
The state of Ohio has passed a law requiring that every automobile be inspected at least once a year for pollution control. Anson Enterprises is considering entering into this type of business. After extensive Mark Anson has developed the following set of projected annual data on which to make his decision: Direct service labor $363,000.00 Variable service overhead costs 270,000.00 Fixed service
overhead costs 280,000.00 Marketing expenses 120,000.00 General and administrative expenses 170,000.00 Minimum profit 90,000.00 Cost of assets employed 500,000.00 Anson believes that his company will inspect 100,000 automobiles per year. The company earns an average of 18.75 percent return on its assets. The price to be charged for inspecting each automobile using the time and materials pricing method would be calculated as A) ($913,000.00 ÷ 100,000 ) + {($913,000.00 ÷ 100,000 ) x [($90,000 + $290,000 ) ÷ $913,000.00]}. B) ($1,203,000.00 ÷ 100,000 ) + [($1,203,000.00 ÷ 100,000 ) x ($90,000 ÷ $1,203,000.00)]. C) ($1,203,000.00 ÷ 100,000 ) + [($500,000 ÷ 100,000 ) x 0.1875]. D) none of these options.
Which of the following factors do not characterize high levels of mutual trust in organizations?
a. Positive relationships between managers and subordinates b. Delegation of decision making c. High remuneration levels d. Consistent and predictable behavior