The Failure to Uphold High Ethical Business Standards by a Few

question 161

True/False

The failure to uphold high ethical business standards by a few companies can negatively impact the entire U.S.business community.
The textbook provided the example of the failure of mortgage brokers to perform due diligence on their customers.In their quest to capture a large home buying market,they failed to check the credit worthiness of their customers.As interest rates on adjustable rate mortgages increased,some homeowners were unable to pay their mortgages.The ripple effect of these failures led to job loss,which sent many homes into foreclosure.

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Definitions:

Emotional Arousal

The state of being emotionally stimulated or excited, which can impact cognitive processes and physical responses.

Fight or Flee

A physiological response to perceived harmful events, attacks, or threats to survival, also known as the fight-or-flight response.

Physiological Basis

The underlying physical and biological mechanisms that enable bodily functions and behaviors.

Voluntary Reactions

Responses or actions that are consciously controlled and decided upon by an individual, as opposed to automatic or reflexive responses.