Which of the Following Statements Concerning a Firm's Quest to Maximise

question 32

Multiple Choice

Which of the following statements concerning a firm's quest to maximise wealth is correct?

• A) In extremely competitive industries, we would expect firms would voluntarily engage in many socially beneficial projects to try to maximise their shares' values.
• B) Actions that maximise a firm's share price are inconsistent with maximising social welfare.
• C) The concepts of social responsibility and ethical responsibility on the part of companies are completely different and neither is relevant in maximising share price.
• D) In a competitive market, if a group of firms does not spend resources making social welfare improvements, but another group does, in general, this will not affect the second group's ability to attract funds.
• E) If government did not mandate socially responsible corporate actions, such as those relating to product safety and fair hiring practices, most firms in competitive markets probably would not pursue such policies voluntarily.

---

Definitions:

Manifest Content

The literal content or storyline of a dream, as remembered by the dreamer.

Analyzing a Dream

The process of interpreting the underlying meanings and symbols in a dream, often utilized in psychoanalysis and other psychological therapies.

Cycles of Sleep

The repeating periods of non-REM and REM sleep experienced through the course of a night, typically occurring in 90-minute intervals.

Restorative Theory

A theory suggesting that sleep is necessary for the body to repair and rejuvenate itself, supporting physical health and efficiency in daily functions.