Karen Is the Assistant Manager of a Midsized Logistics Firm

question 127

Multiple Choice

Karen is the assistant manager of a midsized logistics firm. She believes her manager, Michael, has become carried away with supporting nonprofit organizations and encouraging employees to do community service. What argument would Karen most likely use to turn Michael to her point of view?

• A) Socially responsible decision making by firms can prevent increased government regulation.
• B) Social problems affect society in general, so it is important to protect our society.
• C) The company's time and money should be spent maximizing the owner's wealth, not solving society's problems.
• D) By contributing to social issues, business will decrease its opportunity for long-run profitability.
• E) The logistics business has unique resources that could be used to address serious social issues.

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Definitions:

Property Damage Liability

A component of auto insurance that covers damage you, as the driver, might cause to another person's property.

Underinsured Driver

A motorist who has insurance coverage, but not enough to cover the full costs of a claim from an accident.

Depreciation Rate

The rate at which an asset loses its value over time, often used for accounting and tax purposes.

ABS

Stands for Anti-lock Braking System, a safety feature in vehicles that prevents the wheels from locking up during braking, ensuring the driver maintains steering control.