Which of the Following Is an Example of Ethical Behavior

question 79

Multiple Choice

Which of the following is an example of ethical behavior of the management of a corporation?

• A) Executives of the corporation are pursuing their personal interest.
• B) Payment of bribe by the management of the corporation to foreign governments to obtain business.
• C) The management of the corporation uses confidential information for personal gain.
• D) The management actions are often resulting in large gains for themselves and large losses for stockholders.
• E) The management takes steps to adhere to laws and regulations relating to product safety.

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Definitions:

Strategic Choice

The decision-making process in the context of strategic management, where leaders select the best course of action to achieve organizational goals.

Payoff

In game theory, the reward received by a player (for example, the profit earned by an oligopolist).

Dominant Strategy

A dominant strategy is the best course of action for a player in a game, regardless of what the other players do, always resulting in a better outcome for the player.

Game Theory

The study of strategic interactions among rational decision-makers.