Ethical Standards Are Often Considered Difficult to Enforce

question 8

Multiple Choice

Ethical standards are often considered difficult to enforce.Which one of the following is a good approach to ensuring ethics are followed?

• A)Randomly inquiring of certain employees whether they are being ethical or not.
• B)Routinely check to ensure that applicants make truthful statement on their employment applications.
• C)Ensuring the CEO always includes a comment on the newsletter that ethics are important and must be followed.
• D)Ensuring that key employees sign conflict of interest statements.

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Definitions:

Efficiency

The measure of how well resources are used and allocated to achieve a specific outcome with minimal waste.

Patent

A legal right granted to an inventor or assignee, giving them exclusive rights to manufacture, use, or sell an invention for a certain number of years.

X-inefficiency

This occurs when a firm does not produce output at the lowest possible cost due to inefficiencies within the organization.

Monopoly

A market structure dominated by a single seller, who has exclusive control over a product or service's price and supply.