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Ethical Decision Making by Management Has a Payoff for Shareholders

question 15

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Ethical decision making by management has a payoff for shareholders in terms of:


Definitions:

Merchantability

An implied warranty that goods for sale are reasonably fit for the general purpose for which they are sold.

Implied Warranty

A legal assumption that the goods sold are fit for their intended purpose, even if not explicitly promised by the seller.

Express Warranty

A written or verbal promise made by a seller to a buyer, guaranteeing the quality or functionality of a product or service.

Merchantability

A guarantee that a product will meet reasonable expectations of quality and usability for which it was sold.

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