OnionDome Manufacturing has suffered major losses in the last few years.Last year the board of directors fired the CEO and hired Simon Simple from one of its major competitors.Simple has laid off 20 percent of the hourly employees and 15 percent of the managers and professional staff in the company.He has sold off two unprofitable subsidiaries,and for the first time in five years the company has posted a small profit.This year the board of directors has given Simple a multi-million dollar bonus.Which of the following statements is TRUE?

Question

Quizplus · Accepted Answer

The statement that employees may feel it is unethical for Simple to receive the bonus is true. This is because he implemented mass layoffs and sold off subsidiaries to achieve the profit, which may have negatively impacted the remaining employees and the company's long-term goals. However, the other statements are not true as there is no indication of accounting manipulations and the Sarbanes-Oxley Act is not applicable in this scenario. It is also not uncommon for executives to receive bonuses despite layoffs, as it may be perceived as a reward for their efforts in turning around the company's financial situation.

OnionDome Manufacturing Has Suffered Major Losses in the Last Few