Under the Practical Rule, a Manager Would Not Be Reluctant

question 56

Multiple Choice

Under the practical rule, a manager would not be reluctant to communicate a decision to people outside the company when:

• A) the decision, although unethical, would increase shareholders' wealth.
• B) a typical person would consider the decision acceptable.
• C) a typical person wouldn't care about the decision.
• D) a typical person is unaware of the harmful implications of the decision.
• E) he/she could blame the top management of the firm.

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Definitions:

Monopolistic Competition

A market structure featuring many competitors selling differentiated products, allowing for some degree of market power and price control by each competitor.

Holiday Shopping Season

The period between late November and early January where retail sales tend to increase significantly due to holiday-related shopping.

Online Retailers

Companies that operate on the internet and sell goods or services directly to consumers, without a physical storefront.

Pure Competition

A market structure characterized by a large number of firms selling identical products, making it easy for entry and exit, and ensuring no single firm can influence market prices.