What Is Social Responsibility

question 21

Multiple Choice

What is social responsibility?

• A)a business's obligation to pursue policies, make decisions, and take actions that benefit society
• B)a business tactic used to create relationship bonds with customers
• C)what companies are obliged legally to do to protect their external environments
• D)a business's responsibility to its shareholders
• E)the fact that businesses are responsible for monitoring their social environments so they can satisfy the needs of their customers

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Definitions:

PVGO

Present Value of Growth Opportunities, a valuation method that calculates the value of a firm's growth opportunities and their contribution to the company's total value.

Industry Life Cycle

The stages of growth and development that an industry goes through, from initial emergence to eventual decline.

Share Price

The current price at which a single share of a company's stock can be bought or sold.

CAPM

Capital Asset Pricing Model, a model that describes the relationship between systematic risk and expected return for assets, particularly stocks.