Answer the following statements true (T) or false (F)
1. According to Milton Friedman, the social justification of a business’s existence is in its benefit to stockholders, creation of jobs, and expansion of the economy.
2. Using in-name-only offshore headquarters to minimize U.S. tax burdens is an example of corporate social responsibility.
3. Ethical responsibility is at the top of Carroll’s corporate social responsibility pyramid.
4. Philanthropy means making charitable donations to benefit humankind.
1. True
Friedman represents the view that, as he said, “The social responsibility of business is to make profits.” That is, unless a company focuses on maximizing profits, it will become distracted and fail to provide goods and services, benefit the stockholders, create jobs, and expand economic growth, which amount to the real social justification for the firm’s existence.
2. False
The view against CSR would presumably support the efforts of companies to set up headquarters in name only in offshore Caribbean tax havens (while keeping their actual headquarters in the United States) in order to minimize their tax burden.
3. False
Philanthropic responsibility is at the top of the CSR pyramid
4. True
Philanthropic responsibility is at the top of the CSR pyramid
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Which of the following yields the return on assets ratio?
a. (return on common stockholders' equity) × (asset turnover) b. (return on sales) × (asset turnover) c. (profit margin) × (return on sales) d. (profit margin) × (asset turnover)
The formal terms of an agreement between labor and management of wages, hours, and terms and conditions of employment are found in the ______________________________.
Fill in the blank(s) with the appropriate word(s).
Harley-Davidson markets motorcycles, clothes, toys, and restaurants. It uses its strong ________, which is ________.
A. financial position; an intangible resource B. technological resources; an intangible resource C. brand image; a tangible resource D. brand image; an intangible resource
Allen enters into a contract with Joe to sell his car. However by mistake, he undervalues his car. Though the actual value of the car is $6000, he sells it to Joe for $3000. During the purchase, Joe is aware of the actual value but does not communicate this fact to Allen. Which of the following is likely to be true in such a scenario?
A) Allen is entitled to compensation through a court of law. B) Allen is entitled to cancel the contract because he was not aware of the actual value. C) Joe is entitled to keep the car because the contract is valid. D) Joe must pay the difference to Allen in order to validate the purchase.