Which Level of Social Responsibility Centers on Making Sure Creditors

question 94

Multiple Choice

Which level of social responsibility centers on making sure creditors are paid, a strong competitive advantage is maintained, and operations are efficient?

• A) economic responsibility
• B) legal responsibility
• C) ethical responsibility
• D) philanthropic responsibility

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Definitions:

Accounting Profit

The net income of a business as calculated by subtracting total expenses from total revenues, following standard accounting principles.

Marginal Costs

The additional expense incurred from the creation of one extra unit of a product, essential in economic decision-making.

Marginal Cost Curve

A graphical representation showing the cost of producing one more unit of a good.

Economic Profit

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, representing a profit above the opportunity cost.