Knowing That What Is Rewarded Might Not Always Lead to Ethical

question 39

Multiple Choice

Knowing that what is rewarded might not always lead to ethical behavior, organizations should keep in mind that:

• A) commission programs foster teamwork, cooperation, and positive behavior.
• B) monitoring management performance based on financial outcomes ensures managers will be focused on improving revenues.
• C) focusing on ROA discourages managers from altering assets to make themselves look good.
• D) using safety and quality standards helps to ensure that productivity numbers are not the only concern.
• E) piecework plans lead to both top quality and high volume work.

---

Definitions:

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually pay.

Marginal Cost

The financial outlay required to produce a further unit of a product or service.

Pollution Abatement

Actions taken to reduce, control, or eliminate pollution from sources in order to protect the environment.