If individuals and companies believe they can pursue rewards without facing the risks that should be attached to those pursuits, they are more likely to engage in irresponsible and even unethical behavior. This situation is known as a(n) ________
A) ethical dilemma
B) professional dilemma
C) barrier to entry
D) competitive advantage
E) moral hazard
Answer: E
Explanation: If individuals and companies believe they can pursue rewards without facing the risks that should be attached to those pursuits, they are more likely to engage in irresponsible and even unethical behavior–a situation known as moral hazard.
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