If You Obey the Rules Because You're Afraid of Punishment

question 3

Multiple Choice

If you obey the rules because you're afraid of punishment, which stage of moral development does that represent?

• A) formal conventional morality.
• B) postconventional morality.
• C) conventional morality.
• D) preconventional morality.

---

Definitions:

Reverse Stock Split

A reduction in the number of a corporation's shares available for trade, intended to increase the market value of each share, without changing the company's market capitalization.

Owners' Equity

The residual interest in the assets of a company after deducting liabilities, representing what the owners or shareholders own outright.

Shares Outstanding

The complete count of a corporation's shares currently possessed by all its shareholders, which includes shares held in large blocks by institutional investors and those shares restricted to company insiders.