The Corporate Ethics Problem Is Basically a Problem of Controlling

question 10

Multiple Choice

The corporate ethics problem is basically a problem of controlling:

• A)CEO salaries.
• B)shirking by the managers.
• C)opportunism.
• D)incentives.

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Definitions:

Price Ceiling

A government-imposed maximum price that can be charged for a good or service, intentionally set below the market equilibrium to protect consumers.

Shortage

A situation in which the demand for a good or service exceeds its supply in a market.

Price Floor

A minimum price set by the government or a regulatory body, below which a particular good or service cannot legally be sold.

Surplus

An excess quantity, especially referring to the situation where supply exceeds demand in a market, often leading to a decrease in prices.