Which of the following best describes the two main types of ethical challenges that individuals face in business?

• A. Profit maximization and cost minimization
• B. Ethical dilemmas and ethical lapses
• C. Financial fraud and tax evasion
• D. Legal compliance and corporate governance

Answer: (B)

Verified step by step guidance

1. Understand the context of ethical challenges in business: Ethical challenges often arise when individuals or organizations face situations requiring them to choose between conflicting values or principles.
2. Define the two main types of ethical challenges: Ethical dilemmas occur when there are two or more competing ethical principles, making it difficult to decide the right course of action. Ethical lapses happen when individuals knowingly make unethical decisions, often violating established norms or rules.
3. Analyze the options provided in the question: Evaluate each option to determine whether it aligns with the definition of ethical dilemmas and ethical lapses.
4. Eliminate incorrect options: For example, 'Profit maximization and cost minimization' are business strategies, not ethical challenges. Similarly, 'Financial fraud and tax evasion' are examples of unethical actions, not types of ethical challenges. 'Legal compliance and corporate governance' are frameworks for ensuring ethical behavior but do not describe the types of ethical challenges.
5. Conclude that the correct answer is 'Ethical dilemmas and ethical lapses,' as these terms best describe the two main types of ethical challenges individuals face in business.