A Corporate Manager Looking for Ethical Guidance That Neither the Law

question 20

Multiple Choice

A corporate manager looking for ethical guidance that neither the law nor social norms accounts for must rely on:

• A) a strategy that will maximize profits.
• B) his or her individual conscience.
• C) the advice of other managers.
• D) his or her system of delegation to subordinates.

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Definitions:

Foreign Purchases Effect

The decrease in domestic demand for goods and services as a result of consumers buying goods from foreign markets, usually due to price or currency exchange advantages.

Interest Rate Effect

The interest rate effect describes how changes in the central bank's interest rate influence the economy by affecting consumer spending and investment.

Entropy Effect

In thermodynamics, it refers to the measure of disorder or randomness in a system; metaphorically used in various fields to describe chaos or decline.

Classical Economists

Economists from the 18th and 19th centuries who believed in free markets, limited government intervention, and self-regulating economies.