Under Which of These Conditions Is Private Governance Most Likely

question 50

Multiple Choice

Under which of these conditions is private governance most likely to emerge?

• A) Small lead firms have leverage over larger suppliers.
• B) Large lead firms have leverage over larger suppliers.
• C) The public is totally satisfied with a firm's social and environmental performance.
• D) Firms with highly visible brands are more vulnerable to reputational damage.

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Definitions:

Pure Capitalism

An economic system characterized by private ownership of the means of production, minimal government intervention, and the free market determining prices and distribution of goods.

Communism

A political and economic ideology advocating for a classless society in which the means of production are owned collectively.

Market Economy

An economic system where economic decisions and the pricing of goods and services are guided solely by the aggregate interactions of a country's citizens and businesses with minimal government intervention.

Command System

A method of organizing an economy in which property resources are publicly owned and government uses central economic planning to direct and coordinate economic activities; socialism; communism. Compare with market system.