Summing Up Social Responsibility (Scenario)

question 78

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.
-Mansur's support of using the new product is an indication that he probably ________.

• A) has a weak ego strength
• B) supports the greening of the organization's profits
• C) is using the socioeconomic view of social responsibility
• D) has a strong ego strength

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Definitions:

Expected Rate of Return

The anticipated percentage increase in value that an investment is predicted to generate over a specific time.

Expected Return

The average of all possible returns for an investment, weighted by the likelihood of each outcome.

Portfolio

A portfolio consists of various financial assets such as shares, bonds, commodities, liquid cash, and equivalents like mutual funds and exchange-traded funds (ETFs).

Stock B

Typically a classification indicating a type of stock with specific rights or characteristics, such as differing voting rights from Stock A in the same company.