Which of the Following Statements Is True About the Stakeholder

question 1

Multiple Choice

Which of the following statements is true about the stakeholder theory of corporate social responsibility?

• A)It states that companies should only focus on increasing shareholder wealth.
• B)It states that social responsibility is best carried out by government agencies.
• C)It states that a company owes a duty to be a good citizen in its community.
• D)It states that employees and not the top management should be involved in corporate social responsibility.

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Definitions:

Demand Volatility

The degree to which demand for a product or service can fluctuate unpredictably over a certain period, affecting supply chain and inventory management strategies.

Safety Inventory

Inventory kept as a buffer against forecasted demand and supply variability to prevent stockouts.

Forecasted Demand

The estimated amount of product or service that will be bought by customers in a future period, often used for planning in business operations.

Postponement

A supply chain strategy that delays the final production or distribution of a product until customer orders are received to minimize inventory and forecast error costs.