Summing Up Social Responsibility (Scenario)

question 24

Multiple Choice

Summing Up Social Responsibility (Scenario)
Maher, director of research and development for National Products Company, has learned that a new material has been developed in his department that appears as though it will work in several products already being manufactured by National Products Company. He has discussed the potential savings with his two assistants, Sawsan and Mansur, and the vice president of product development, Raed. Sawsan has stated her opposition to the use of the new product because its durability and flame retardance have not completed testing and have not been certified by the company's third-party testing laboratory. Mansur argues that the initial tests that their R&D department completed indicate minimal problems with both durability and flame retardance. Raed states that in several meetings he has recently attended, the company president had repeatedly emphasized the need to increase earnings per share. Raed tells Maher that a decision has to be made within the week about the new products use by National Products Company.
-Sawsan's opposition to the use of the new product is an indication that she probably ________.

• A) has an external locus of control
• B) has a weak ego strength
• C) is using the classical view of social responsibility
• D) has an internal locus of control

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Definitions:

Finite Life

Refers to assets or investments that have a defined time period over which they are expected to generate returns or be useful.

Amortize

The process of paying off a debt over time through regular payments, which can include portions of both principal and interest.

Tangible Assets

Physical assets that can be seen and touched, such as machinery, buildings, and inventory.

Generate Revenue

The process of earning income from operations or activities, typically through the sale of goods or services.