One Should Be Cautious in the Interpretation, but a Summary

question 83

Multiple Choice

One should be cautious in the interpretation, but a summary of more than a dozen studies analyzing the relationship between organizational social responsibility and economic performance provides what conclusion?

• A) Corporate social involvement tends to devalue stock prices in the long run.
• B) Good economic performance allows firms to be socially responsible.
• C) There is a positive relationship between corporate social involvement and economic performance.
• D) Being socially responsible causes good economic performance.

---

Definitions:

Fair Value

The price at which an asset would be exchanged between knowledgeable, willing parties in an arm's length transaction.

Full IFRS

The complete set of International Financial Reporting Standards that are globally accepted guidelines for preparing financial statements.

Private Company

A business entity owned by private individuals or entities and not traded publicly on the stock exchange, often characterized by closely held ownership.

Debt Financing

The method of raising capital through borrowing, typically by issuing bonds or taking out loans, which obligates the borrower to repay the borrowed amount plus interest.