The Executives of a Major Corporation Contribute to Charitable Causes

question 74

Multiple Choice

The executives of a major corporation contribute to charitable causes only when they are certain their gift will be well publicized,their public image will be improved,and ultimately be translated into increased profits.The corporation's charitable acts are most easily explained in terms of

• A)the empathy-altruism hypothesis.
• B)Latan and Darley's decision tree.
• C)social-exchange theory.
• D)the moral exclusion principle.

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Definitions:

Accounts Receivable

Funds owed to a company by customers for products or services that have been delivered or used but not yet paid for.

Equity Multiplier

This financial ratio measures a company’s total assets financed by stockholders, indicating the leverage level relative to equity.

Debt-Equity Ratio

A measure of a company's financial leverage, calculated by dividing total liabilities by shareholders' equity.

Return On Equity

An indicator of how effectively a company uses investor funds to produce profit growth, determined by dividing the net income by the equity of shareholders.