Scenario B: Suppose a Manager Faces a Question Regarding How

question 50

Multiple Choice

Scenario B: Suppose a manager faces a question regarding how to handle a defective piece of equipment that his company sold.Telling the customer would cost him a substantial amount of money.At the same time,if the equipment fails,it could lead to serious injury of the customer.The manager is going to choose among three options presented by colleagues:
Option 1: Keep quiet about the defect.
Option 2: Talk to others and see what they would have done in the same situation.
Option 3: Disclose the defect and suggest alternatives because it is the honest thing to do.
-Which of the following terms best describes the ethical approach used in option 2?

• A)universalism
• B)egoism
• C)utilitarianism
• D)relativism
• E)virtue ethics

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Definitions:

Total Utility

The complete fulfillment gained from the consumption of a specific quantity of products or services.

Total Utility

The overall satisfaction or happiness a consumer gets from consuming a particular quantity of goods or services.

Risk-neutral

A risk preference suggesting indifference between taking a risk with a potential gain or loss and a certain outcome with the same expected payout.

Utility

A measure of satisfaction, happiness, or benefit derived from consuming a product or service.