If a Negative Act of High Moral Intensity Occurs in a Business

question 15

Multiple Choice

If a negative act of high moral intensity occurs in a business, which of the following is most likely to happen?

• A) The company will face legal consequences, and employees of high moral intensity will be most upset.
• B) The company will face relatively low societal outrage, and those employees of low moral quality will react strongly.
• C) The public will experience strong moral outrage, but the company's employees will be largely unaffected emotionally.
• D) The public will have almost no moral outrage, but the company's employees will be very emotionally affected.

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Definitions:

Variable Cost

Variable Cost refers to expenses that change in proportion to the business activity level or volume of production.

Residual Income

The amount of income that exceeds the minimum rate of return expected from investments or operations.

Invested Assets

Resources or capital that has been allocated by individuals or entities into financial instruments or projects expecting future returns.

Sales

The transactions or operations involved in the selling of goods or services, resulting in revenue for the company.