The Practice of Reciprocity

question 74

Multiple Choice

The practice of reciprocity:

• A)involves an illegal exchange of cash
• B)is monitored closely by the FCPA
• C)results in improved competition among sales and marketing firms
• D)is illegal when one company pressures another company to join an agreement
• E)is another name for slander

Identifying the roles and responsibilities of regulatory bodies (e.g., Public Company Accounting Oversight Board) in maintaining ethical standards in business practices.

Appreciating the role of whistleblowers and legal protections provided under acts such as the Sarbanes-Oxley Act in promoting ethical practices in organizations.

Understand the various methods and tools of performance appraisal.

Recognize the impact of job design on employee motivation and development.

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Definitions:

APC

In economics, it stands for Average Propensity to Consume, indicating the fraction of income that is spent.

Disposable Income

Resources households have at their disposal for saving and expenditure once income taxes have been accounted for.

Marginal Propensity

Typically refers to the marginal propensity to consume (MPC), which is the proportion of an additional income that a consumer spends on goods and services as opposed to saving it.

Disposable Income

The income available for saving and spending after the deduction of income taxes from earnings is known as disposable income.