Out-Tel, a computer chip manufacturer, knowingly sold defective chips and failed to notify customers of the potential problems. When the problem became public knowledge, the firm's stock price fell dramatically. This illustrates the value that investors place on the ethical behavior of businesses.

Question

Quizplus · Accepted Answer

The scenario suggests that when a company engages in unethical behavior, such as selling defective products and failing to communicate the potential problems to customers, investors will react negatively and the company's stock price will fall. Therefore, this illustrates the value that investors place on ethical behavior in businesses.

Out-Tel, a Computer Chip Manufacturer, Knowingly Sold Defective Chips and Failed