An Academic Question (Scenario)

question 83

Multiple Choice

An Academic Question (Scenario)
As a university student, you wonder about some of the practices in the university and just how some of these practices should be evaluated in reference to social issues.
-If someone criticized your university for incurring the cost of being socially responsive, the university might point to a series of studies that indicates that the relationship between corporate social involvement and economic performance is ________.

• A) negative
• B) very negative
• C) neutral
• D) positive

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Definitions:

Asset Investment

The use of funds to purchase property, securities, or other assets to generate returns or achieve strategic goals.

Operating Assets

Assets used in the day-to-day operations of a business to generate revenue, excluding investment and idle assets.

Controllable Margin

A measure of profitability that represents the amount of income over which managers have control, usually after direct costs have been deducted from revenues.

ROI

Return on Investment, a measure used to evaluate the financial performance of an investment by dividing the benefit (or return) of the investment by its cost.