Profit Responsibility Refers to

question 89

Multiple Choice

Profit responsibility refers to

• A) the obligation of a firm to price its products or services at a level whereby the consumer is treated fairly and the firm is still able to make a profit.
• B) the view that an organization has an obligation to those who can affect the achievement of its objectives.
• C) the concept that no expansion or additional research and development will occur until a company is making a profit.
• D) the idea that organizations are part of a larger society and are accountable to that society for their actions.
• E) the duty of a firm to maximize financial returns for its owners or stockholders.

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Definitions:

Elastic Supply

Refers to a situation where the quantity of a good supplied by producers changes significantly in response to a change in price.

Elasticities

A measure in economics that shows how much the quantity demanded or supplied of a good responds to changes in price, income, or other factors.

Tax Burden

The measure of taxes that an individual or business must bear, often expressed as a percentage of income or profit.

Legal Assignment

The transfer of a property right or title to some particular benefit, usually from one party to another, under the terms of a legal agreement.