The Theory of Business Social Responsibility That Holds That a Business

question 54

Multiple Choice

The theory of business social responsibility that holds that a business owes duties solely to produce the highest return for its shareholders is:

• A) the moral minimum theory
• B) the maximizing profits theory
• C) the stakeholder interest theory
• D) the corporate citizenship theory
• E) the social audit theory

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Definitions:

Benefits-Received Principle

The idea that those who receive the benefits of goods and services provided by government should pay the taxes required to finance them.

Taxation

The process by which governments finance their expenditure by imposing charges on citizens and corporate entities.

Public Schools

Educational institutions funded and administered by governmental agencies, offering free education to students.

Benefits-Received Principle

A theory in taxation where taxes are apportioned according to the level of government services used by the taxpayer.