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:

Principal May

An ambiguous term that could refer to the permissive actions or rights of a principal in legal, financial, or educational contexts; however, without more context, a specific definition cannot be provided. Likely a misinterpretation or incomplete term, hence treated as NO.

Delegation Of Authority

The process of transferring responsibility and authority from one party to another to complete specific activities or tasks.

Actual Work

The physical or mental effort expended towards the completion of tasks, often considered in contrast to planning or theoretical development.

Third Restatement

The Third Restatement refers to updated versions of the American Law Institute's restatements on various areas of law, providing a contemporary summary of common law principles.