Which of the Following Is True with Regard to Corporate

question 38

Multiple Choice

Which of the following is true with regard to corporate social performance?

• A) Responsive corporate social performance increases social pressure that affects financial performance.
• B) Responsive corporate social performance is always rewarded by customers.
• C) Moral considerations do not motivate corporate social performance.
• D) Corporate social performance need not be motivated by moral considerations but instead could be strategic or a response to the social pressure a firm faces.

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Definitions:

Objectivity

The practice of basing decisions, judgments, or analysis on facts and evidence, free from personal bias or emotions.

Target Cost

The desired cost of a product derived from subtracting the desired profit margin from the competitive market price.

Profit Requirement

The minimum level of earnings necessary for a business to sustain its operations or fulfill its financial goals.

Profit Mark-Up

The percentage added to the cost of goods to arrive at the selling price.