A Factor Demanding the Ethical and Social Responsibility of Business

question 15

Multiple Choice

A factor demanding the ethical and social responsibility of business is:

• A) the "invisible hand" of competition.
• B) the sheer size and power of individual corporations.
• C) the fact that self-regulation has been effective in achieving social goals.
• D) great amounts of wealth and economic power are controlled by a small number of shareholders who own and exercise tight control over a large number of corporations.

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Definitions:

Financial Engineering

The application of mathematical techniques to solve financial problems, including designing new financial instruments.

Financial Instruments

Contracts that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Bretton Woods Accord

An agreement reached in 1944 that established a new global financial system including fixed exchange rates and created major entities like the International Monetary Fund and the World Bank.

Exchange Rate

The price of one country’s currency expressed in another country’s currency.