A Company's Board of Directors Chooses to Provide a Comprehensive

question 86

Multiple Choice

A company's board of directors chooses to provide a comprehensive health care plan for the families of all employees, despite the large cost. They argue that this will not only increase the number of employees who stay with the firm, and thus reduce some costs involved in employee turnover, but also increase the employees' diligence and industry. What general principle is being argued by the board of directors?

• A) In a conflict between stakeholders in a company, the most important stakeholder is not always the stockholders.
• B) Some activities that decrease shareholders' wealth may have intangible benefits which increase the strength of the company overall.
• C) When a conflict of interest arises between shareholders and other stakeholders, in general, the correct solution is the one that creates the greatest good for the greatest number of stakeholders.
• D) Ethical decisions should be assessed on their moral value, not on their value in dollars and cents.

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Definitions:

UCS Preexposure Effect

The effect caused by exposure to the unconditioned stimulus (UCS) prior to conditioning; it impairs later conditioning when a conditioned stimulus (CS) is paired with that UCS.

New Food

Refers to any food product that has been recently developed, introduced, or becomes available for consumption, often involving innovative ingredients or preparation methods.

Flu

An infectious viral illness causing fever, muscle pain, sore throat, and cough, often leading to severe fatigue.

Backward Conditioning

A paradigm in which the unconditioned stimulus (UCS) is presented and terminated prior to the conditioned stimulus (CS).