Examlex
In addressing an ethical problem, a business decision maker evaluates possible solutions to the problem and then considers what should be done. In terms of the IDDR approach, this is
Externalities
Costs or benefits that affect parties who did not choose to incur that cost or benefit, often leading to market failure if unaddressed.
Moral Hazard
A situation in which one party engages in risky behavior or lacks incentive to guard against risk because another party bears the consequences.
Moral Hazard
The situation in which one party can take risks because they know that they will not have to bear the full consequences of their actions.
Life Insurance
A contract between an insurer and a policyholder, where the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person.
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