Question

Which of the following statements is CORRECT?

A. If a lower level person in a firm does something illegal, like "cooking the books," to understate costs and thereby artificially increase profits because he or she was ordered to do so by a superior, the lower level person cannot be prosecuted but the superior can be prosecuted.
B. Ethics is not an important consideration in business and in business schools.
C. Ethical behavior is not influenced by training and auditing procedures. People are either ethical or they are not, and this is what determines ethical behavior in business.
D. There are many types of unethical business behavior. One example is where executives provide information that they know is incorrect to outsiders. It is illegal to provide such information to federally regulated banks, but it is not illegal to provide it to stockholders because they are the owners of the firm.
E, If someone deliberately understates costs and thereby causes reported profits to increase, this can cause the stock price to rise above its intrinsic value. The stock will probably fall in the future. Both those who participated in the fraud and the firm itself can be prosecuted.

Answer 1

"D" is the CORRECT and the most appropriate option our of all the options

Step-by-step explanation:

There are many type of unethical practices in the business.

1. Differentiation - The main motive of the ethics is to understand the difference between right and wrong as the executive can provide information to the stockholders but not anyone outside the firm.

2. Loyalty - It is important when the employee is linked with any organisation to keep all its secrets as it known as Business Ethics.

3. Representation - As the employee represent the business entity , its image is at stake with the employee. Henceforth no such deed should be done.