10. Moral hazard is best described in contexts in which a. division managers cite enormous top management pressures "to make the budget" as excuses for not adhering to ethical accounting policies and procedures. b. the numbers that subunit managers report should be uncontaminated by "cooking the books." C. an employee prefers to exert less effort than desired by the owner because the effort cannot be accurately monitored and enforced. d. socially companies set aggressive environmental goals and measure and report their performance against them.

Business/Professional Ethics Directors/Executives/Acct
8th Edition
ISBN:9781337485913
Author:BROOKS
Publisher:BROOKS
Chapter4: Practical Ethical Decision Making
Section: Chapter Questions
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10. Moral hazard is best described in contexts in which a. division managers cite enormous top management pressures "to make the budget" as excuses for not adhering to ethical accounting policies and procedures.

b. the numbers that subunit managers report should be uncontaminated by "cooking the books."

C. an employee prefers to exert less effort than desired by the owner because the effort cannot be accurately monitored and enforced.

d. socially companies set aggressive environmental goals and measure and report their performance against them. 

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