The Social Responsibility Approach Sees Business as Having ________

question 73

Multiple Choice

The social responsibility approach sees business as having ________.

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

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Definitions:

Inflation Rate

This is the percentage rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Nominal Interest Rate

The percentage increase in money that borrowers pay lenders, not adjusted for inflation.

Fisher Effect

An economic theory stating that the real interest rate is independent of monetary measures, particularly the nominal interest rate and expected inflation rate.

Menu Costs

The costs to a company associated with changing prices, including the physical costs of changing price tags and the administrative costs of updating systems.