alleryStart learning →What can poor business ethics cost a company?
AA rise in the interest rate charged on its loans
BA negative image, heavy expense, and even bankruptcy
CAn automatic increase in the corporate tax rate
DA ban on selling any product for one full year
Answer & Solution
Correct answer: B. A negative image, heavy expense, and even bankruptcy
1. Poor business ethics can create a very negative image for a company.
2. It can also be expensive for the firm and for the executives involved.
3. It can result in bankruptcy for the business and jail time for the offenders.
4. Automatic tax increases and blanket sales bans are not among the consequences described.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 2 "Making Ethical Decisions and Managing a Socially Responsible Business", section 2.2 How Organizations Influence Ethical Conduct_
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