What Does "Maximizing Profits" as a Social Responsibility Theory in Business

question 6

Multiple Choice

What does "maximizing profits" as a social responsibility theory in business imply?

• A)A corporation must consider the effects of its actions on persons other than its shareholders.
• B)A corporation's duty is to make a profit while avoiding causing harm to others.
• C)A corporation owes a duty to take actions that increase profits for its shareholders.
• D)A corporation has the prime responsibility of increasing its profits in order to benefit the society at large.

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Definitions:

Resale Price Maintenance

A practice where a manufacturer and its distributors agree on the price at which a product should be resold to the public.

Controversial

Something that causes disagreement or debate due to differing opinions or interpretations.

Cartel

A coalition of manufacturers or suppliers aiming to uphold high price points and curtail competitive forces.

Oligopoly

A market structure characterized by a small number of firms that have significant market power, which allows them to collaborate, thereby influencing prices and production.