Which of the Following Is NOT One of the Examples

question 45

Multiple Choice

Which of the following is NOT one of the examples provided as an organizational benefit received from being socially responsible?

• A)They can attract outstanding employees who prefer working for a responsible firm.
• B)They are more likely to be welcomed into a foreign country.
• C)They are more likely to attract capital infusions from investors who view reputable companies as desirable long-term investment.
• D)They are guaranteed to maximize resource productivity and reduce the average payback period of investment.
• E)Their environmental concerns may enable them to charge premium prices and gain brand loyalty.

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Definitions:

Share Price

The price of a single share of a company's stock, determined by market supply and demand.

Stock Dividend

Increases the number of shares outstanding, but at a slower rate than splits. Current shareholders receive additional shares on some proportional basis. Thus, a holder of 100 shares would receive 5 additional shares at no cost if a 5% stock dividend were declared.

Shareholder's Wealth

The total value of an individual's or entity's equity in a firm, essentially reflecting the market value of their shares.

Institutional Investors

Entities such as pension funds, insurance companies, and mutual funds that invest large amounts of money in securities, real estate, and other investment assets.