Frank Thinks That It Is Inappropriate for His Company,BSD Corporation,to

question 20

Multiple Choice

Frank thinks that it is inappropriate for his company,BSD Corporation,to spend valuable company time and resources on meeting with stakeholder groups.He,and others who oppose stakeholder involvement,identify the following rationale(s) :

• A)Managing so many stakeholders diverts management's attention away from the business.
• B)Corporations are not designed to benefit shareholders.
• C)Responding to stakeholders' interest does not produce loyalty.
• D)There is an agreement on priorities.
• E)It is necessary for business success.

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Definitions:

Anticipatory Breach

An action in contractual agreements where one party indicates they will not fulfill their contractual obligations before the due time.

Abandonment

The act of giving up a legal right or interest with the intention of never claiming it again, often seen in property or relationship contexts.

Contractual Obligations

Duties that parties are legally bound to perform as specified in a contract, the failure of which could lead to legal consequences.

Fraudulent Misrepresentation

A false statement of fact made by one party to another, which has the effect of inducing that party into a contract.