All of the Following Are Arguments Against Increased Social Responsibility

question 120

Multiple Choice

All of the following are arguments against increased social responsibility except

• A) "social issues are the responsibility of government officials elected for that purpose."
• B) "companies should maximize profits, not solve society's problems, with their time, money, and talent."
• C) "because social problems affect society in general, businesses should not be expected to solve these problems."
• D) "social responsibility by firms can prevent increased government intervention."
• E) "business managers are primarily responsible to stockholders for providing them a good return."

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Definitions:

Relevant Knowledge

Information or understanding that is directly applicable and beneficial to a particular situation or subject.

Adverse Selection

A situation where sellers have information that buyers do not have, or vice versa, about some aspect of product quality.

Health Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured individual, providing financial protection or reimbursement against losses from illness or injury.

Principal-Agent Problem

A dilemma in economics and organizational theory where one party (agent) is expected to act in the best interest of another party (principal) but may act in their own interest instead.