Some Argue for the Narrow View of Corporate Social Responsibility

question 42

Multiple Choice

Some argue for the narrow view of corporate social responsibility on the ground that managers have a fiduciary responsibility to maximize the profits of their shareholders.As discussed in Chapter 5,one problem with this argument is that

• A)companies do not usually have a clear chain of command.
• B)promises don't override all our other obligations.
• C)managers don't always know how to maximize profits.
• D)stockholders don't expect company managers to make money for them.

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Definitions:

Conversion Costs

Conversion costs are the combined costs of labor and overhead expenses required to convert raw materials into finished products.

Equivalent Units

Measures used in manufacturing to express the amount of work completed in terms of fully finished units during a given period.

First-in

This typically refers to the inventory valuation method "First-In, First-Out" (FIFO), which assumes the first items produced or purchased are the first ones sold.

Conversion Costs

Costs incurred during the transformation of raw materials into finished goods, typically including labor and overhead.