When Managers of a Firm Seek to Unilaterally Rewrite the Terms

question 2

Multiple Choice

When managers of a firm seek to unilaterally rewrite the terms of a contract with suppliers,buyers,or complement providers in a way that is more favorable to their firm,they are engaging in

• A) opportunistic exploitation.
• B) ethical behavior.
• C) corruption.
• D) philosophical ethics.
• E) self-dealing.

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Definitions:

Festinger

A psychologist known for his theory of cognitive dissonance, which suggests that people experience psychological discomfort when holding two or more contradictory beliefs.

Cognitive Dissonance

A psychological phenomenon where an individual experiences discomfort due to holding conflicting beliefs or attitudes, leading to an alteration in one of the beliefs or attitudes to reduce the discomfort.

Reducing Techniques

Strategies or methods used to decrease anxiety, stress, or other negative emotional states.

Bem's Self-Perception Theory

A psychological theory suggesting that people often infer their own attitudes and feelings from observing their behavior and the context in which it occurs, rather than initially recognizing inner attributes as the cause.