Wealth Maximization Is Consistent with Ethical Behavior Because

question 27

Multiple Choice

Wealth maximization is consistent with ethical behavior because

• A) Managers tend to focus on long-term results not immediate performance
• B) All unethical behavior by managers is known and ethical shareholders will not hold shares in their companies
• C) Any unethical behavior always results in legal proceedings against the company
• D) Low wages and poor working conditions do not produce quality, innovative products
• E) In the short term, ethical behavior is always more cost-effective than unethical behavior

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Definitions:

Chunking

A memory strategy that involves organizing information into manageable units or chunks.

Short-Term Memory

The capability to maintain a small volume of information in a condition of ready availability for a short time.

Short-Term Memory

The capacity for holding a small amount of information in an active, readily available state for a short period of time.

Magic Number

A term often used to refer to the number 7±2, which psychology suggests is the span of working memory, or the maximum number of items an individual can maintain in cognizant thought at once.