The Relationship Between Corporate Social Performance and Financial Performance Is

question 44

Multiple Choice

The relationship between corporate social performance and financial performance is viewed from three different perspectives. The most popular view is based on the belief that

• A) socially responsible firms are more financially profitable.
• B) more profitable firms have the ability to be more socially responsible.
• C) social responsibility and financial performance are inter-related and affect each other.
• D) there is no relationship between social responsibility and financial performance.

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Definitions:

Merger

The combination of two or more companies into a single entity, usually to achieve synergies or improve competitive positioning.

Consolidation

The process of combining assets, liabilities, and other financial items of two or more entities into one. In financial accounting, it refers to the aggregation of financial statements of a group company as consolidated accounts.

Combining Firms

The process of merging two or more companies into one entity, typically to achieve synergies or strategic objectives.

Acquiring Firm

A company that purchases a majority interest in another company to take control of it.