Regarding the Quality of Design, Production, and Distribution of Products

question 201

Multiple Choice

Regarding the quality of design, production, and distribution of products, an ethical requirement for management is to:

• A) determine whether any of the organization's stakeholders are being wronged by poor quality products.
• B) gain ISO 9000 certification for the organization.
• C) obtain a product safety certificate from the Consumer Product Safety Commission.
• D) have the organization's legal staff write disclaimers in the product instruction booklets.
• E) compare the cost of product liability to the external failure cost.

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Definitions:

Acquisition

The process of obtaining control of another corporation by purchase or stock exchange.

Chemical Company

A business involved in producing and selling chemicals for industrial, agricultural, medical, or consumer markets.

Medical Equipment

Devices used for medical purposes, ranging from simple tools like stethoscopes to complex machines like MRI scanners.

Merger

The combination of two or more companies into a single entity, often to achieve greater efficiencies, expand market share, or enhance competitive advantages.