Question

Jake is a small business owner of Macho Doors, a manufacturer and installer of garage doors. His business has earned the reputation as a reliable, trustworthy business that makes high quality, long-lasting doors. However, with rising gasoline and wood prices, Jake is finding it hard to maintain the existing quality standards. If he continues with the existing quality standard, his profit margins will go down and he will not be able to hike his employees' salaries; if he inserts panels of lower quality wood the reputation of his business will be lost. The situation that Jakes faces is typically described as a(n) _____.

A. mutuality

B. ethical dilemma

C. caveat emptor

D. cognitive dissonance

Answer

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