The Moral Principles and Standards That Guide Behavior in the World

question 122

Multiple Choice

The moral principles and standards that guide behavior in the world of business are called

• A)business principles.
• B)business philosophy.
• C)business development.
• D)business ethics.
• E)organizational politics.

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Definitions:

Excess Capacity

The situation in which a firm or economy can produce more goods than are currently being produced, due to underused resources.

Diseconomies of Scale

Increases in cost per unit when output increases, often due to inefficiencies that arise with too large an operation.

Monopolistic Competition

A market structure characterized by many firms selling differentiated products with no perfect substitutes, allowing for some degree of market power.

Product Variety

Refers to the assortment of different goods and services that a company offers to meet consumer demands.