Temptations and pressures to act unethically are thought to be greater in big business than in small business. Which option is true?

• A. Temptations are greater in big business.
• B. Temptations are the same in both sizes.
• C. Temptations are greater in small business.
• D. Temptations are not greater in big business than in small business.

Answer: (D)

Ethical temptations come from the environment and the controls that guide decisions, not simply from a firm’s size. Larger organizations may have more formal policies and audits, but they also face more complex incentives and pressures; this doesn’t automatically make unethical temptations greater. The idea that temptations are not greater in big business than in small business captures the point that size alone doesn’t determine ethical risk—it depends on culture, leadership, and internal controls. In practice, ethical risk exists in any size when there’s weak governance or a weak ethical tone, so saying there isn’t a greater temptation in big business (in general) is the most accurate overall takeaway.