Harriette Owned a Diner in the 1950s

question 138

Multiple Choice

Harriette owned a diner in the 1950s. At that time, the town in which Harriette's diner was located had a law declaring that it was illegal for restaurants to serve white people and black people in the same dining room. But Harriette never made customers of different races eat in separate rooms. What does this situation demonstrate about Harriette's business practice?

• A) It is an example of an ethical lapse.
• B) It is clearly unethical, because obeying the law is the most fundamental ethical requirement of all.
• C) It is ethical, even though it was illegal according to local law.
• D) It is neither ethical nor unethical; it represents a pure business decision that has no ethical dimension.

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Definitions:

Profit-oriented Business

A business entity that focuses primarily on generating profits or financial gains as its main objective.

Accounting

The systematic process of recording, measuring, and communicating financial information to help in making informed business decisions.

Total Liabilities

The aggregate of all debts and other legal obligations of an individual or company due to other entities.

Total Assets

The sum of all assets owned by a business, including current, fixed, and intangible assets, representing its overall value.