When Asked About an Idea for a New Product, a Socially

question 98

Multiple Choice

When asked about an idea for a new product, a socially responsible manager in the 21st century might say which of the following?

• A) "If it's profitable, let's make it."
• B) "We can make the product, but what about the social effects?"
• C) "What are the tax implications if we make this product?"
• D) "How many do we have to sell to make a profit?"

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Definitions:

Accounting Transactions

Economic events that require recording in the financial statements because they affect the assets, liabilities, or equity of a company.

Accounting Records

Documentation and books that keep track of the financial transactions of a business or individual, forming the basis for its financial statements.

Asset

Resources controlled by a business from which future economic benefits are expected to flow to the business, including both physical items and intangible properties.