Which of the following statements concerning a firm's quest to maximize wealth is correct?
A. In extremely competitive industries, we would expect firms would voluntarily engage in many socially beneficial projects to try to maximize their stocks' values.
B. Actions that maximize a firm's stock price are inconsistent with maximizing social welfare.
C. The concepts of social responsibility and ethical responsibility on the part of corporations are completely different and neither is relevant in maximizing stock price.
D. In a competitive market, if a group of firms does not spend resources making social welfare improvements, but another group does, in general, this will not affect the second group's ability to attract funds.
E. If the government did not mandate socially responsible corporate actions, such as those relating to product safety and fair hiring practices, most firms in competitive markets probably would not pursue such policies voluntarily.
Answer: E
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A person who violates the Clean Water Act can face possible imprisonment in addition to other penalties.
Answer the following statement true (T) or false (F)
Plants show turgor pressure when
A. cells contain water vacuoles that are full of water. B. water is being used up in photosynthesis. C. water is being evaporated from the leaves. D. cells are losing water from their water vacuoles.
Which of the following would not be a valid reason to keep some currency on hand at a place of business?
a. To pay small, unforeseen expenses b. To make up for any imbalance in the books c. To advance money to sales reps for travel expenses d. To provide money for cash registers
Which of the following refers to a marketing intelligence technique?
A) interviewing customers randomly B) increasing the annual budget for R&D C) investing heavily in primary research D) implementing product diversification E) benchmarking competitors' products