Which of the Following Statements Is True of the Role

question 28

Multiple Choice

Which of the following statements is true of the role of economic interdependence on business ethics and society?

• A) It reduces concerns about business ethics.
• B) It sometimes gives opportunities to executives who control what stockholders own to manipulate corporate actions for their own benefit.
• C) It reduces any transparency problems in an organization as corporate leaders are usually the real owners of corporations.
• D) It predominantly results in utilitarianism.
• E) It ensures that the decision taken by stockholders have little effect on others.

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Definitions:

Total Fixed Costs

The sum of all costs that remain constant regardless of any change in a company's production volume.

Diminishing Returns

A principle stating that if one input in the production of a commodity is increased while other inputs are held fixed, a point will eventually be reached at which additions of the input yield progressively smaller, or diminishing, increases in output.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out.

Average Variable Costs

represent the variable costs (costs that change with output level) per unit of output, calculated by dividing the total variable costs by the quantity of output produced.