Which of the Following Statements Concerning a Firm's Quest to Maximize

question 33

Multiple Choice

Which of the following statements concerning a firm's quest to maximize wealth is correct?

• A)In extremely competitive industries, we would expect firms would voluntarily engage in many socially beneficial projects to try to maximize their stocks' values.
• B)Actions that maximize a firm's stock price are inconsistent with maximizing social welfare.
• C)The concepts of social responsibility and ethical responsibility on the part of corporations are completely different and neither is relevant in maximizing stock price.
• D)In a competitive market, if a group of firms does not spend resources making social welfare improvements, but another group does, in general, this will not affect the second group's ability to attract funds.
• E)If government did not mandate socially responsible corporate actions, such as those relating to product safety and fair hiring practices, most firms in competitive markets probably would not pursue such policies voluntarily.

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Definitions:

Meditation

A practice of mindfulness or focusing the mind on a particular object, thought, or activity to train attention and awareness, and achieve a mentally clear and emotionally calm and stable state.

Stretching and Strengthening Exercises

Physical activities designed to improve flexibility and muscle strength, contributing to overall physical fitness and injury prevention.

Spiritual Well-being

A state of being where an individual experiences peace and harmony in their life, often connected to beliefs, faith, or existential understanding.

Medicare

A federal health insurance program in the United States primarily for people 65 years of age and older.