The Utilitarian Approach to Business Ethics Suggests That

question 59

Multiple Choice

The utilitarian approach to business ethics suggests that

• A) people should be treated as ends and never purely as means to the ends of others.
• B) the moral worth of actions or practices is determined by their consequences.
• C) people have dignity and need to be treated as such.
• D) human beings have fundamental rights and privileges that transcend national cultures.

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Definitions:

Informed Markets

Markets where all participants have access to all relevant information, leading to more efficient price determination.

Residual Claim

Stockholders’ claim to income and assets is the residual after all other claims are satisfied.

Common Shareholders

Individuals or entities that own common shares in a corporation, granting them voting rights and a claim on a portion of the company’s profits through dividends.

Preemptive Rights

The right of existing shareholders to maintain their fractional ownership of a company by buying a proportional number of shares of any future issue of common stock.