Nortron Corporation Wants to Create an Ethical Environment in Its

question 38

Multiple Choice

Nortron Corporation wants to create an ethical environment in its company.Which of the following has been found to help foster a sense of ethics within an organization?

• A)The company may develop a formal,written ethics code.
• B)The company may institute a formal ethics training program for the employees.
• C)The top executives may provide good examples by behaving ethically themselves.
• D)All of these alternatives have been used by U.S.companies to create an ethical environment in their organizations.

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Definitions:

Economic Profit

The return flowing to those who provide the economy with the economic resource of entrepreneurial ability; the total revenue of a firm less its economic costs (which include both explicit costs and implicit costs); also called “pure profit” and “above-normal profit.”

X-Inefficiency

The difference between actual output and the maximum possible output that could be achieved with the same input of resources, due to inefficiencies within a firm.

Dynamic Change

The process of constant, sometimes unpredictable change within systems or environments, affecting economic, social, or technological aspects over time.

Usury Laws

Legislation that limits the amount of interest that can be charged on loans.