CAF-7 · Chapter 6 · Question 13 of 15
A CEO refuses to recall a defective product because it would cause a massive drop in quarterly earnings and anger the shareholders. According to Tucker's model, the CEO is heavily prioritizing which question over the others?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Is it profitable?
Explanation
The 'Is it profitable?' question deals with market values and short-term/long-term financial benefits for shareholders. The CEO is prioritizing this financial aspect over fairness to customers or doing the right thing.
More Ethical Decision Making Models MCQs
- Q15When applying Tucker’s 5-question model, if a proposed course of action results in a 'No' answer to one of the questions (e.g., it is…
- Q1In Tucker’s 5-question model for ethical decision-making, the question 'Is it fair?' primarily considers the impact of a decision on:
- Q2A CFO discovers that the company's new product has a minor safety defect. Fixing it would cost millions, while ignoring it might only…
- Q3Which of the following represents the first step in the American Accounting Association (AAA) 7-step model for ethical decision making?
- Q4An internal auditor identifies a financial irregularity but is threatened with termination if she reports it. In the AAA model, during…