The Costs Incurred When Ethical Wrongdoing Is Done Fall into Three

question 9

Multiple Choice

The costs incurred when ethical wrongdoing is done fall into three specific categories and include all except

• A) intangible costs such as legal and investigative costs incurred by the company.
• B) internal administrative costs associated with ensuring future compliance.
• C) intangible costs such as customer defections.
• D) less visible costs such as costs of complying with often harsher government regulation.
• E) visible costs to shareholders such as lower stock price.

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Definitions:

Resale Price Maintenance

A practice where manufacturers and distributors agree on the price at which a product will be sold in retail, limiting what retailers can charge.

Antitrust Laws

Antitrust laws are regulations designed to promote competition and prevent monopolies and other forms of market domination that could harm consumers.

Controversial Business Practices

Practices in business that raise ethical, social, or environmental concerns and are debated by the public and experts alike.

Tying Strategy

A marketing strategy where a company requires customers to buy a secondary product or service together with a primary product.