PHI 445 week 3 Quiz
One objection to companies hiring undocumented immigrants is:
such immigrants make no social security payments.
such immigrants increase wages paid to everyone else.
such immigrants often commit voter fraud.
such immigrants depress wages paid to everyone else.
Intellectual piracy has been estimated to cost American corporations, at a minimum:
A company’s managers, operating in a foreign country, should:
operate only within their own personal ethical code.
reject the foreign country’s culture and practices.
be sensitive to the foreign country’s traditions.
ignore all violations of U.S. law and traditions.
A multinational corporation, according to Ethisphere, should act ethically in another country because it:
will offend the host country.
can often be profitable and ethical.
will necessarily improve stock value.
One effective and ethical way to minimize agency costs is to make sure:
managers throughout the corporation follow the same practices.
no foreign managers are hired.
managers have enough money to bribe the authorities.
allow managers to make up their rules as they wish.
A company that is located in Mexico, just across the border from Texas, may seek to minimize its levels of pollution because:
it may damage the company’s reputation.
it may affect others in Mexico and thus impose a social cost.
it may affect others in the US and thus impose a social cost.
all of the above.
A U.S. Senator owns stock in a company that will be affected by a law that, if passed, will lower the profits of that company. This Senator could be said to have a/an:
conflict of interference.
conflict of interest.
optimal hedge strategy.
Critics of multinational corporations that locate offices in other countries sometimes complain that such corporations:
generate too many opportunities for the native population.
exploit the native population and violate local traditions.
force American managers to learn another language.
distort market mechanisms and price signals.
Which of these, if any, would violate standard ethical principles that govern accounting?
Submitting quarterly reports
Shifting income to a later period
Replacing GAAP with IFRS
None of these
Milton Friedman says the following about insider trading:
it violates all moral principles.
it violates some moral principles.
stricter laws would prohibit it more effectively.
it is useful and productive for investors.
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