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Suppose That You Own a Small Manufacturing Firm in a Competitive

Question 139

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Suppose that you own a small manufacturing firm in a competitive industry and your profitability has been suffering. As a result of participating in a trade show, you get a call from a firm in a European country. The person on the other end of the phone tells you that his company is interested in purchasing $500,000 of your product (and maybe more in a month or two) . You are ecstatic, because this is the type of order you need to return your firm to profitability. Before you hang up the phone, however, the person on the other end tells you that in his country, it is customary to pay $5,000 in cash to the purchasing agent who "gets you the order. Immediately, you recognize this as a bribe-if you pay the purchasing agent $5,000 in cash, you'll get the $500,000 order. This situation is best described as a/an


A) social justice decision.
B) ethical dilemma.
C) cost of doing business.
D) social responsibility decision.
E) tradeoff dilemma.

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