To Ensure That Basic Ethical Principles Are Adhered to in the Organization

question 41

Multiple Choice

To ensure that basic ethical principles are adhered to in the organization, managers should:

• A) build an organizational culture that places a high value on economic aspects.
• B) make sure that leaders within the business only articulate the rhetoric of ethical behavior.
• C) put minimal governance processes in place.
• D) check with prior employees regarding someone's reputation before hiring.
• E) foster and encourage on-the-job consumption.

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold in a given market.

Marginal Cost Function

A mathematical representation showing how the cost of producing one additional unit of a good changes as the quantity of production varies.

Marginal Benefit

The extra pleasure or benefit gained by a person when they consume one more unit of a specific product or service.

Moral Hazard

The situation where one party is involved in a risky event beyond their control but is protected against the risk because another party bears the cost of those risks.