Question

Select the true statement about the relationship between law, ethics, and business.

a. Ethical business practices and conduct have value only to the owners and managers of a business.
b. Ethical business practices and conduct generate goodwill that can be measured in the monetary value of a business.
c. Ethical business practices and conduct increase employee and customer satisfaction, but do not affect a business' bottom line.
d. Ethical business practices and conduct are more important to the short-term success of a business than the long-term.

Answer 1

Answer:

B

Explanation:

Ethical business practices generates goodwill. For example, if a firm is known to be ethical, individuals would be interested in doing business with them as a result of this. This can create goodwill when the ethical firm is sold

Ethical business practices benefits customers, owners and managers. It is also important for the long term success of the firm.