Which of the Following Is an Example of How Business

question 34

Multiple Choice

Which of the following is an example of how business law guides business conduct?

• A) The law sets rules and penalties to encourage compliance.
• B) The law sets specific codes of ethics to guide conduct.
• C) The law seeks levels of compensation exceeding losses.
• D) The law limits executive compensation to guide conduct.

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Definitions:

Tradable Licenses

Permits that can be bought and sold, allowing the holder to engage in a particular activity or emit a certain amount of pollutants.

Common Resources

Goods that are accessible to all members of a society but have a limited supply, leading to potential overuse.

Socially Optimal

A state or outcome in which resources are allocated in the most efficient manner from a societal perspective, maximizing social welfare.

Toll Road

A toll road is a public or private roadway for which a fee is assessed for passage. It generates revenue used for road construction, maintenance, or other transportation expenses.