Which of the Following Statements Is True About the Social

question 67

Multiple Choice

Which of the following statements is true about the social obligation approach?

• A) It sees business as having both economic and societal goals.
• B) It considers business as having both societal and economic goals as well as the obligation to anticipate potential social problems.
• C) It sees business as having societal goals and the obligation to anticipate potential social problems, but lacking economic goals.
• D) It considers business as having primarily economic purposes and confines social responsibility activity mainly to existing legislation.
• E) It considers business as having both societal and economic goals as well as the obligation to anticipate potential social problems and work actively toward preventing their occurrence.

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Definitions:

Tombstone Advertisement

A simple and straightforward advertisement typically used in the finance sector to announce a public offering.

Waiting Period

A designated period of time one must wait before a certain action can be taken or a particular benefit becomes effective.

Red-Herring Prospectus

A prospectus with a warning written in red print at the top of the page telling investors that the registration has been filed with the SEC but is not yet approved.

Warning

A notice given to inform someone of possible danger, risk, or other negative consequences that may occur.