Dunfee Thinks That Businesses Should Respect Consumers' Moral Beliefs and Desires

question 51

Multiple Choice

Dunfee thinks that businesses should respect consumers' moral beliefs and desires. Why?

• A) Because businesses should respect the ethics of the communities in which they operate.
• B) Because consumers are better judges of right and wrong than are businesses.
• C) Because failing to respect consumers' ethics can damage a business in the long run.
• D) Both (a) and (b)
• E) Both (a) and (c)

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Definitions:

Sensitivity Analysis

A technique used to determine how different values of an independent variable affect a particular dependent variable.

Fixed Costs

Fixed overheads that are unaffected by changes in production or sales volume, like rental costs, payroll, and insurance charges.

Strategic Option

Refers to choices available to a company or an investor that could affect key business or investment strategies beneficially.

Soft Rationing

The situation where a company limits the amount of financial resources available for certain projects based on internal policy decisions.