Moral Hazard Can Be Reduced at the Workplace by _____

question 36

Multiple Choice

Moral hazard can be reduced at the workplace by _____.

• A) setting and monitoring targets for managers
• B) aiming to maximize growth and not sales
• C) paying managers higher salaries
• D) increasing the number of managers in the firm

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Definitions:

Autonomous Moral Agents

Individuals or entities capable of making their own ethical decisions and bearing responsibility for those decisions.

Justified Individuals

Persons whose actions or beliefs are deemed ethical, legal, or right based on moral or legal grounds.

Moral Decisions

Choices made by individuals reflecting their judgments about what is right or wrong, often involving complex considerations of ethical principles and values.

General Deterrence

The use of punishment to discourage people in general from committing crimes, based on the fear of penal consequences.