With Which of the Following Statements Would Most People in Business

question 26

Multiple Choice

With which of the following statements would most people in business agree?

• A) A corporation's short-run profits will almost always increase if the firm takes actions that the government has determined are in the best interests of the nation.
• B) Firms and government agencies almost always agree with one another regarding the restrictions that should be placed on hiring and firing employees.
• C) "Whistle blowers," because of the courage it takes to blow the whistle,are generally promoted more rapidly than other employees.
• D) It is not useful for large corporations to develop a formal set of rules defining ethical and unethical behavior.
• E) Although people's moral characters are probably developed before they are admitted to a business school,it is still useful for business schools to cover ethics,if only to give students an idea about the adverse consequences of unethical behavior to themselves,their firms,and the nation.

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Definitions:

Maintenance

The upkeep and repair of machinery, equipment, and buildings to ensure their optimum working condition.

Shortage

A market condition occurring when the demand for a product or service exceeds the supply available at a specific price.

Equilibrium Level

The state of balance where demand equals supply in a market, resulting in an optimal distribution of resources without excess supply or demand.

Price Ceiling

A maximum legal price above which a product cannot be sold; to have an impact, a price ceiling must be set below the equilibrium price.