The Textbook Includes a Boxed Insert on the "Failure and Fraud

question 30

Multiple Choice

The textbook includes a boxed insert on the "Failure and Fraud Among American Managers." The main criticism of American managers is

• A)they no longer take enough risks.
• B)they are more interested in their own advancement than in the good of the organization.
• C)they sacrifice long-term planning for short-term gains.
• D)they pay insufficient attention to legal and financial aspects of their companies.
• E)they are complacent about the role of government.

Recognize the relationship between the production of goods and environmental damage.

Differentiate between negative and positive externalities.

Assess the effects of human activity on the environment.

Understand the role of market economies in regulating pollution levels.

---

Definitions:

Competitive Injury

Harm or damage inflicted on a business's competitive position, often through unfair practices by competitors.

Section 7 of the Clayton Act

A provision in U.S. antitrust law that prohibits mergers and acquisitions where the effect may be substantially to lessen competition, or tend to create a monopoly.

Competition

The rivalry among businesses to attract customers and achieve higher sales, profits, and market share.

Monopoly

A market structure characterized by a single seller offering a unique product or service without close substitutes, leading to control over pricing and market conditions.