Which of the Following Is Not a Reason Why the Institutionalization

question 32

Multiple Choice

Which of the following is not a reason why the institutionalization of business ethics has progressed in recent decades?

• A)Institutionalization of ethics is now mandated for all organizations by governments around the world
• B)Stakeholders have recognized the need for improving business ethics
• C)The government has stepped in when scandals and misconduct have damaged key constituents of businesses
• D)Gatekeepers have been questioned as to their contributions to major scandals
• E)Highly ethical companies tend to be more profitable than those suffering from misconduct issues

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Definitions:

Entry Barriers

Entry barriers are obstacles that make it difficult for new competitors to enter an industry or market, which includes factors like high initial investment, strict regulations, and strong incumbency advantages.

Mutual Interdependence

A situation in oligopoly markets where the actions of one firm directly affect and are affected by the actions of other firms.

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for significant influence over price.

Countervailing Power

The theory that competitive markets can be achieved through balancing the power of large companies by organizing a counterforce, such as labor unions or government regulations.