Which of the Following Statements About Sexual Harassment Is Most

question 13

Multiple Choice

Which of the following statements about sexual harassment is most accurate?

• A) Only men can be charged with sexual harassment.
• B) Sexual harassment cannot be proven unless the employee's submission to such conduct was made explicitly a term of employment or was used to influence the results of the employee's performance appraisal.
• C) One flaw with the current laws concerning sexual harassment is that they do not take into account the possibility of same-sex harassment.
• D) In evaluating charges of sexual harassment, the courts place a great deal of emphasis on whether the behavior was unwelcomed.

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Definitions:

Moral Hazard

A situation in which one party engages in risky behavior knowing that it is protected against the risk by another party.

Asymmetric Information

A situation where one party in a transaction has more or superior information compared to another, often leading to an imbalance in the transaction.

Small Firms

Businesses often characterized by a small number of employees, limited market share, and possibly locally oriented markets.

Principal-Agent Problem

A situation in economics where there is a conflict of interest between a principal (such as a shareholder) and an agent of the principal (such as a manager), due to the agent having more information.