The RedCap Corporation Is Committed to Social Responsibility

question 24

Multiple Choice

The RedCap Corporation is committed to social responsibility. It is looking for a new shipping partner and has found LogiSpec, one that seems to be perfect since it employs individuals with disabilities, contributes a portion of profit to the local school system, and allows its employees to work on flextime. RedCap is very interested in LogiSpec's attention to social responsibility. However, its pricing is almost 12% higher than other shippers RedCap is considering. The fact that RedCap's decision has to balance the company's desire for social responsibility and investors' desires for profits is an example of a(n) ____ responsibility.

• A) ethical
• B) legal
• C) cost
• D) philanthropic
• E) economic

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Definitions:

Outstanding Voting Rights

The rights to vote that are held by shareholders of a company, which have not been exercised yet.

Self-Regulating Organizations

Entities that operate independently to enforce rules and standards within a particular industry or profession without direct government oversight.

Securities Regulation

The set of laws and regulations governing how securities are issued, bought, sold, and traded, primarily aimed at protecting investors.

Securitization

The financial practice of pooling various types of contractual debt such as mortgages and selling their related cash flows to third-party investors as securities.