The Most Consistent Conclusion from the Experiments for Ethical Conduct

question 15

Multiple Choice

The most consistent conclusion from the experiments for ethical conduct and management in the nonmarket environment is that ________.

• A) firms that allow managers to decide unilaterally and solely according to their individual preferences are more stable than those that do not
• B) monitoring of firms by stakeholders and other parties tends to decrease the moral cost of violating ethics standards
• C) people differ in their behavior, preferences, and moral conduct
• D) transparency increases social distance

---

Definitions:

Security Interest

A legal right granted by a debtor to a creditor over the debtor's property to secure the repayment of a debt or performance of some other obligation.

Real Property

Land and anything permanently affixed to it, such as buildings and trees.

Mortgage

A legal agreement by which a bank or creditor lends money at interest in exchange for taking title of the debtor's property, with the condition that the conveyance of title becomes void upon the payment of the debt.

Deed of Trust

A legal document used in some states that involves three parties—the borrower, the lender, and the trustee—and it serves as a lien on real property.