In the Business World, What Does Social Responsibility Refer To

question 125

Multiple Choice

In the business world, what does social responsibility refer to?

• A) attempts to earn the highest possible return for the owners of a business
• B) the obligation to obey the law
• C) the obligation of a business organization to contribute to society
• D) decisions individuals make about what is right and wrong

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Definitions:

Economic Profits

The earning surplus after all forms of expenses, direct and indirect, are deducted from total earnings.

Purely Competitive

A market structure characterized by a large number of small firms, homogeneous products, and free entry and exit, leading to price taking behavior.

Marginal Costs

The upsurge in full cost that comes from the generation of one additional unit of a good or service.

Short Run

A period in economic analysis where at least one input is fixed, focusing on immediate effects and adjustments in production or operations.