Martha Stewart Seems to Have Made a Bad Decision Concerning

question 7

Multiple Choice

Martha Stewart seems to have made a bad decision concerning the use of insider information in selling ImClone stock.The resulting negative publicity on the issue caused the value of her corporation,Martha Stewart Living,to fall by almost half.This example is supposed to show that:

• A)insider trading can pay off in certain circumstances.
• B)ethics and wealth creation are not linked in any way.
• C)stock markets are fickle stewards of wealth.
• D)ethics and wealth creation are closely linked.

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Definitions:

Social Class

The relatively permanent, homogeneous divisions in a society into which people sharing similar values, interests, and behavior can be grouped.

Determining Factor

A crucial element or condition that decisively influences the outcome or future of something.

Birthright

A privilege or possession into which one is born; can refer to social privileges, property, or rights available to a person from birth.

Foreign Corrupt Practices Act

A United States law that prohibits U.S. firms and individuals from paying bribes to foreign officials to facilitate business deals.