According to the Utilitarian Approach, CEOs Give Priority to the Stakeholders

question 24

Multiple Choice

According to the utilitarian approach, CEOs give priority to the stakeholders who have the most

• A) power and largest holdings.
• B) legitimacy and the best PR.
• C) power, legitimacy, and urgency.
• D) stability and legitimacy.
• E) utility and power.

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Definitions:

Current Liability

A financial obligation a company is expected to settle within one fiscal year or its current operating cycle, whichever is longer.

Long-term Debt

Loans and financial obligations lasting more than one year that a company owes to external parties.

Contingent Liability

A potential liability that may become an actual liability in the future.

Warranty Expense

Costs associated with the obligation to repair or replace a product due to defects for a specified period.