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 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.
E
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At the end of the accounting period, the owners of debt securities:
A. Must record a gain or loss on the interest income earned. B. Must retire the debt. C. Must report the dividend income accrued on the debt securities. D. Must record any interest earned on the debt securities during the period. E. Must record a gain or loss on the dividend income earned.
Who among the following generally lends funds to a business entity and expects repayment of the funds?
A) A partner B) A stockholder C) An owner D) A creditor
Which of the following is NOT an accurate statement concerning the use of primary and secondary research methods?
a. Secondary research helps to establish a starting point for primary research. b. A researcher typically considers both secondary and primary research methods when deciding how to best obtain information to solve a particular problem. c. Primary research refers to the predominant research method selected for a study, with secondary research available as an option, if needed. d. Primary research includes observation, experimentation, and normative surveys.
Artificial variables can be used in both maximization and minimization problems but are most often used in minimization problems
Indicate whether the statement is true or false