The Manager of a Large Retail Chain Recently Spoke to a Group

question 64

Multiple Choice

The manager of a large retail chain recently spoke to a group of college students about being successful in the business world. He focused particularly on the importance of fulfilling the purpose of the business organization: that is, to produce and market profitable products needed by society. In so doing, he indicated that a shareholder, not the society as a whole, invests in a corporation to earn a return on his or her investment and that a firm is legally obligated to act in shareholders' interests. What concept do the manager's comments reveal?

• A) socioeconomic model of social responsibility
• B) economic model of social responsibility
• C) strictest model of social responsibility
• D) consumerism

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Definitions:

Fire Insurance Policy

A contract that provides financial compensation to the insured in case of fire damage to property or goods.

Destroyed

When something is damaged beyond repair or no longer exists in its original form.

Collect

To gather or assemble multiple items or amounts together; also refers to the act of receiving payment.

Insurance Policy

A contract between an insurer and the insured, detailing the terms under which the insurer agrees to provide financial protection against specified risks.