Why Is It So Important That Managers,and People in General,should

question 67

Multiple Choice

Why is it so important that managers,and people in general,should act ethically and temper their pursuit of self-interest by considering the effects of their actions on others?

• A) Because giving excessive importance to oneself with no consideration of societal interests leads to disaster for each individual and for the whole society because scarce resources are destroyed.
• B) Because ethical issues are seldom clear-cut since the rights,self-interests,goals,and incentives of different stakeholders often conflict.
• C) Because a manager has no reluctance about communicating an ethical decision to people outside the company since the typical person in a society would think it is acceptable.
• D) Because if all companies make the right choices,all stakeholders will benefit in the long run.
• E) Because a company affects the prosperity of a society and a nation and,to the degree that a company is involved in global trade,all the countries it operates in and thus the prosperity of the global economy.

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Definitions:

Output

In economics, output refers to the total amount of goods and services produced by an economy or a firm in a given period.

U.S. Net Exports

The value difference between what the United States exports to other countries and what it imports, which can be positive (surplus) or negative (deficit).

Aggregate Demand

The total call for goods and services throughout an economy, calculated at a predetermined price level during a given time period.

U.S. Financial Institutions

Organizations that provide financial services, such as banks, insurance companies, and stock exchanges, within the United States.