Actions That Benefit Shareholders but Harm the Other Stakeholders Would

question 31

Multiple Choice

Actions that benefit shareholders but harm the other stakeholders would be viewed as ________ from the efficiency perspective but ________ from the social responsibility perspective.

• A) managerially responsible; socially irresponsible
• B) socially responsible; managerially irresponsible
• C) socially irresponsible; managerially responsible
• D) managerially irresponsible; socially responsible

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Definitions:

Supply Curve

A graphical representation showing the relationship between the price of a good and the amount of the good that producers are willing and able to supply.

Perfectly Competitive Firms

Businesses that operate in a market where prices are dictated by supply and demand, and where no single buyer or seller has market control.

Homogeneous Products

Undifferentiated outputs; products that are identical to or indistinguishable from one another.

Price Takers

Market participants who accept the prevailing market price without having the influence to change it due to their relatively small size in the market.