​You Feel Strongly About Working for a Socially Responsible Company

question 113

Multiple Choice

​You feel strongly about working for a socially responsible company, so you are pleased when a prospective employer brings this up. He shows you a set of statements that are posted in all the firm's offices to remind people of the basic steps in the social responsibility pyramid. Choose the statements that appear in this set.

• A) ​Be profitable.
• B) ​Obey the law.
• C) ​Be ethical.
• D) ​Be a good corporate citizen.
• E) ​Put efficiency first.

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Definitions:

Pretax Profit

The earnings a company generates before taxes are deducted.

Common Stock

A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's profits or losses.

Dividend Payments

Cash payments made by a company to its shareholders, usually derived from the company's profits.

Financing Activities

Transactions related to raising capital, repaying investors, and restructuring company debt within a business's cash flow statement.