The Position That It Is Good for Business to Do

question 72

Multiple Choice

The position that it is good for business to do business ethically has all but one of the following characteristics.

• A) It has a short-term view of ethical management.
• B) It is the keystone of efficient operation of business organizations.
• C) Customers who feel cheated will not return.
• D) Ethical businesses develop a reputation for fair dealings.

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Definitions:

Payoff Matrix

A table that describes the potential outcomes or payoffs in a strategic situation, depending on the actions of two or more decision-makers.

Nash Equilibrium

A concept in game theory where no player can benefit by changing strategies while the other players keep theirs unchanged.

Dominant Strategy

A strategy that is best for a player in a game regardless of what strategies other players choose.

Cartel

An agreement among competing firms to control prices or exclude entry of a new competitor in a market, often to maximize profits collectively.