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olga_2 [115]
3 years ago
8

Marshall owns and operates a construction firm. He uses inexpensive and low-grade building products and accepts inferior carpent

ry work from his subcontractors. Nevertheless, Marshall complies with all the city building codes as well as all state and federal laws. Has he fulfilled all of his ethical obligations?
a. No, because ethics is too hard to define.
b. Yes, because legal standards are stricter than ethical standards.
c. Yes, because ethical obligations require only legal behavior.
d. No, because legal compliance is regarded as the moral minimum.
Business
1 answer:
Kitty [74]3 years ago
3 0

Answer:

The correct option is (d)

Explanation:

Ethics is considered above law as law requires just compliance of laws, rules and regulations. Ethics on the other hand establishes a standard of moral conduct. Being mere legal does not mean that something is ethical. Ethical responsibilities are not codified as it is expected from businesses to follow the same.

Here, Marshall, though complied with legal frameworks, he failed to fulfill his ethical obligations by using low-grade products that could harm the general public in future.

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Answer:

a. Earnings per share = (Operating profit - Interest expense - Tax - Preferred dividends) / Common stock outstanding

Earnings per share = ($200,000 - $10,000 - $61,250 - $18,750) / $20,000

Earnings per share = $110,000 / 20,000 Shares

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Common dividends per share = Dividend paid / Common stock outstanding

Common dividends per share = $30,000 / 20,000 Shares

Common dividends per share = $1.50 per share

b. What was the increase in retained earnings for the year?

Increase in retained earnings = $110,000 - Common dividend paid

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Answer:

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