Which of the Following Arguments on Social Responsibility States That

question 98

Multiple Choice

Which of the following arguments on social responsibility states that a business is socially responsible only when it pursues its economic interests?

• A) costs
• B) violation of profit maximization
• C) superiority of prevention over cures
• D) too much power

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Definitions:

Noncumulative

A term often used in dividends policy, indicating that if a dividend is not paid out, it doesn't accumulate for future payment.

U.S. GAAP

United States Generally Accepted Accounting Principles, which constitute the framework of guidelines for financial accounting used in the US.

Interest Expense

The charge for borrowing money typically calculated as a rate of the principal amount annually.

Net Operating Losses

A situation where a company's operating expenses exceed its revenues, which can have tax implications and affect future earnings reports.