INTRODUCTION TO ENTREPRENEURSHIP
IMPORTANCE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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investors prefer companies they perceive to be ethical.
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the government fines unethical companies,
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employees resign from unethical companies.
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unethical companies usually go bankrupt.
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Detailed explanation-1: -Illegal business practices are ones against the law. Such practices are always unethical. Discrimination or harassment in the workplace, low payments to employees, and theft of money are examples of illegal practices.
Detailed explanation-2: -For investors, a poor firm reputation caused by unethical events may signal a potential firm crisis. Investors might decide to reduce or even withdraw investment to avoid the risk of damage caused by firm’s unethical behavior.
Detailed explanation-3: -Draws more investors toward the business Strong business ethics are also an attractive quality, which means other investors are more likely to be interested in investing their money into the company, keeping its share price high and protecting it from takeover.
Detailed explanation-4: -Pressure to Succeed. Employees may choose to act unethically based on unrealistic expectations to succeed. Employees Are Afraid to Speak Up. Lack of Training. There’s No Policy for Reporting. Managers Setting Bad Examples.