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:

Stock A

A generic term used to represent a share in the ownership of a company, typically entitling the shareholder to a portion of the profits.

Mean-Variance Efficient Portfolio

A portfolio constructed to have the highest possible expected return for a given level of risk.

Covariances

A measure of how two variables move in relation to each other, indicating the degree to which they vary together.

Evolution of Beta

Refers to how the beta value of a security, indicating its volatility relative to the market, changes over time.