When Confronted with a Decision on an Action, Managers Should

question 36

Multiple Choice

When confronted with a decision on an action, managers should utilize ________, which includes these four questions: "Is the proposed action legal? If yes, does the proposed action maximize shareholder value? If yes, is the proposed action ethical? If no, would it be ethical to take the proposed action?"

• A) Maslow's hierarchy of needs
• B) the stakeholder's value statement
• C) Frank Gilbreth's code of ethical conduct
• D) Bagley's ethical decision tree
• E) the Sarbanes-Oxley Act of 2002

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Definitions:

Output Effect

The effect that changes in the price level have on the quantity of goods and services supplied, due to the real balances of money.

Marginal Revenue Product

The additional revenue generated by employing one additional unit of a factor of production, crucial for decision-making in business.

Output Rises

An increase in the quantity of goods or services produced within an economy, often indicating economic growth or expansion.

Wage Rate

The compensation paid to employees for their labor per time unit, often quantified on an hourly or annual basis.