The manager of a large chain recently spoke to a group of college students about making it in the business world. He focused particularly on the importance of fulfilling the purpose of the business organization: that is, to produce and market profitable products needed by society. In so doing, he indicated that a stockholder, not the society as a whole, invests in a corporation to earn a return on his or her investment and that a firm is legally obligated to act in stockholders' interests. What concept do the manager's comments reveal?
A. Socioeconomic model of social responsibility
B. Economic model of social responsibility
C. Strictest model of social responsibility
D. Consumerism
E. Rights of employees
Answer: B
You might also like to view...
If shares of stock are sold or exchanged for more than par value, the excess is called
a. a discount. b. a gain. c. a premium. d. earnings.
Choose either a singular or a plural verb for subjects that are ____________________, and then be consistent in all other contexts with the name
a. familiar b. ambiguous c. complex d. organizational names
Sue Hank has just indicated that the extra benefits from getting an A in her personal finance course are not worth the extra effort she must give. Sue used marginal analysis in making her decision
Indicate whether the statement is true or false.
A shadow price reflects which of the following in a maximization problem?
A) the marginal gain in the objective that would be realized by adding one unit of a resource B) the marginal gain in the objective that would be realized by subtracting one unit of a resource C) the marginal cost of adding additional resources D) the marginal gain of selling one more unit