Which of the Following Statements Is True Regarding Ethics in Decision-Making

question 51

Multiple Choice

Which of the following statements is true regarding ethics in decision-making?

• A) Since most business decisions are simply a matter of economics, ethical considerations should be ignored.
• B) Decision-making can have an ethical as well as an economic impact.
• C) Managerial accountants do not face ethical issues.
• D) Business managers will always agree on ethical choices.

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Definitions:

Negative Externalities

Costs experienced by someone who is not directly involved in the production or consumption of a good or service.

Positive Externalities

Benefits experienced by third parties or society at large as a result of an economic activity, without the third party incurring any cost.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning no one can be prevented from using them and one person's use does not reduce availability to others.

Consumer Surplus

The gap between what consumers are prepared and can afford to pay for a product or service, and what they end up paying in reality.