A Company's Unethical Behavior Risks Doing Considerable Damage to the Company's

question 74

Multiple Choice

A company's unethical behavior risks doing considerable damage to the company's shareholders in the form of:

• A) adverse fallout including lost revenues and higher costs,lower profits and lower stock price,and diminished business reputation.
• B) diminished personal reputation.
• C) balancing duties with economic reality.
• D) disapproval from community activists,government agencies,and interested parties.
• E) All of these.

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Definitions:

Monopolists

Entities or individuals that have exclusive control over the production and sale of a particular good or service, allowing them to manipulate market conditions.

Monopolist

A single seller in a market who has significant control over the price and supply of a product or service.

Perfectly Competitive Firm

A firm that operates in a market where there are many buyers and sellers, no barriers to entry or exit, and all firms sell identical products.

Natural Monopolies

A type of monopoly that arises due to high infrastructure costs and other barriers to entry which make it inefficient for more than one provider to operate (e.g., water supply).