Legal Environment of business

True or False

9) Judges in civil law courts find themselves obligated to follow precedents. 9) _______ 10) Disadvantages of case law do not destroy the benefits of certainty, predictability, and stability provided by case law and stare decisis. 10) ______ 11) According to Adam Smith, leading a good life means being solely concerned about the fortunes of oneself. 11) ______ 12) Stakeholder theory suggests that through its managers, an ethical corporation avoids risks to stakeholders which, if explained, would be clearly unacceptable. 12) ______ 13) In a modern corporation, the very nature of corporate structure gives managers the opportunity to abuse and misappropriate corporate resources owned ultimately by shareholders. 13) ______ 14) One of the observations made by the Spanish journal Boletin Circulo is that profits and business ethics are contradictory. 14) ______