Which of the Following Statements Is in Agreement with the Socioeconomic

question 90

Multiple Choice

Which of the following statements is in agreement with the socioeconomic view of corporate social responsibility?

• A) Financial improvement can be achieved by being socially responsible.
• B) The primary responsibility of business is to maximize business profits.
• C) By acting responsibly, businesses avoid government regulation.
• D) Businesses must be concerned with the broader social concerns and not just with corporate profits.
• E) Society is served best when businesses are allowed to maximize their profits.

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Definitions:

Underlying Asset

The financial instrument upon which a derivative's price is based, such as stocks, bonds, commodities, or currencies.

Exercise Price

The cost at which an option's possessor has the right to purchase (for a call option) or dispose of (for a put option) the base security or commodity.

Margin Requirements

The minimum amount of equity that must be maintained in a margin account to hold an investment position, set by brokerage firms or regulatory bodies.

Option Positions

Refers to the holdings an investor has in options contracts, which could be either calls (betting the stock will rise) or puts (betting the stock will fall).