Which Theory of Business Social Responsibility Holds That a Business

question 86

Multiple Choice

Which theory of business social responsibility holds that a business owes duties to its various constituencies such as customers and employees in addition to its shareholders?

• A) moral minimum
• B) maximizing profits
• C) stakeholder interest
• D) corporate citizenship
• E) moral maximum

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Definitions:

Per-unit Costs

Refer to the average cost for each unit of a product or service that is produced, including all relevant expenses.

Marginal Costs

The additional cost incurred by producing one more unit of a good or service.

Fixed Costs

Costs that do not change with the level of output or sales, such as rent, salaries, and insurance, remaining constant regardless of business activity levels.

Marginal Product

The increase in output that results from employing one more unit of a particular input, holding all other inputs constant.