Which of the Following Statements Is an Argument for Corporate

question 42

Multiple Choice

Which of the following statements is an argument for corporate social responsibility?

• A)The primary responsibility of social welfare rests with governments and not business firms.
• B)The free market should decide what is best for the world.
• C)Businesses have resources, so businesses should be given the chance to solve social problems.
• D)Businesses never aid to social problems as the primary objective of businesses is making profits.

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Definitions:

Risk-Free Rate

The earnings from an investment that carries no possibility of losing money, usually linked to government-issued bonds.

Weighted Average Cost

A method used to calculate the average cost of a group of assets, taking into account the varying weights of each asset.

Systematic Risk

The type of risk inherent to the entire market or market segment, which cannot be mitigated or eliminated through diversification.

Cost of Equity

The return a company theoretically pays to its equity investors to compensate them for the risk they undertake by investing in the company's stock.