When Individuals Make an Ethical Decision on the Basis of Avoiding

question 42

Multiple Choice

When individuals make an ethical decision on the basis of avoiding direct consequences and they obey to avoid punishment, this is an example of which stage of Kohlberg's stages of moral development?

• A) level 1: preconventional thinking
• B) level 2: conventional thinking
• C) level 3: postconventional or principled thinking
• D) level 4: graduated level of thinking

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Definitions:

EAR

stands for Effective Annual Rate, a calculation that reflects the annual interest on an investment or loan, taking into account the effect of compounding interest.

APR

Annual Percentage Rate, which represents the annualized cost of credit including interest and other charges, helping consumers compare the cost of loans.

Continuous Compounding

Continuous compounding refers to the process of calculating interest on an investment, where the interest amount is reinvested and earns additional interest continuously, leading to exponential growth.

Sharpe Ratio

A metric used to assess the risk-adjusted return of an investment portfolio.