Reasons Why a Business Might Engage in Activities That Are

question 36

Multiple Choice

Reasons why a business might engage in activities that are less profitable to itself but which are beneficial to society are:

• A) because of expectations of future legislation.
• B) to market itself as a good citizen.
• C) to improve liquidity.
• D) A and B

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Definitions:

Productivity

A measure of the efficiency of production, often quantified as the ratio of outputs to inputs in a production process.

Human Capital

The competencies, insights, and background that an individual or community has, assessed based on their economic value or cost to an organization or country.

Experience

The knowledge or skill obtained from involvement in or exposure to events, activities, or specific fields of work or study.

Compensating Differential

A wage premium paid to employees to compensate for undesirable aspects of a job, such as long hours or hazardous conditions.