"A Third Criterion Is to Impose and Enforce Rules Fairly

question 73

Multiple Choice

"A third criterion is to impose and enforce rules fairly and impartially to ensure justice or an equitable distribution of benefits and costs." Which of the following statements is true regarding this criterion?

• A) Union members typically oppose this view.
• B) It justifies paying people based on their performance.
• C) It promotes risk taking and innovation.
• D) It increases productivity.
• E) It protects the interests of the underrepresented and less powerful.

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Definitions:

Capital at Risk

The amount of capital that could be lost in an investment due to various risks.

Insurance Company

An organization that provides financial protection and compensation for specified losses in return for payment of a premium.

Probability

The chance or odds of a specific event taking place.

Premiums

The amount paid for an insurance policy.