Which of the Following Is NOT One of the Arguments

question 28

Multiple Choice

Which of the following is NOT one of the arguments offered by those who oppose corporations habitually engaging in social responsibility programs?

• A) Based on their legal status,organizations are technically prohibited from such activities.
• B) Such activity detracts from the basic mission society has given business.
• C) Social responsibility programs have the potential to create substantial conflicts of interest.
• D) Business executives lack the expertise to make decisions about social programs.
• E) There is too much potential for the abuse of the power that corporations have already without adding to it.

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Definitions:

Holding Companies

Entities created to own the outstanding stock of other companies, controlling their policies and management.

Subsidiary

A company that is completely or partly owned and partly or wholly controlled by another company.

Ownership

The state or fact of owning something, which can involve possessing property, shares in a company, or any asset that grants the owner legal rights and responsibilities.

Horizontal Mergers

A business consolidation that occurs between firms that operate in the same industry or production stage.