Which of the Following Are Not Regarded as Barriers to Being

question 49

Multiple Choice

Which of the following are not regarded as barriers to being an ethical organization?

• A) Ill-conceived goals
• B) Indirect blindness
• C) Fulfilling commitments
• D) The slippery slope

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Definitions:

X-inefficiency

A situation where a firm operates with higher than necessary costs due to a lack of competition or other inefficiencies, not achieving maximum productivity.

Principal-agent Problems

Conflicts of interest and challenges in monitoring that arise in relationships where one party (the agent) is supposed to act in the best interest of another (the principal).

Paradox of Voting

The situation where individual rationality leads to a collective decision that is worse for everyone involved.

Principal-agent Problems

Situations where there is a conflict of interest between a principal (such as an owner or shareholder) and an agent (such as a manager), due to diverging goals or asymmetrical information.