​Proponents of the Socioeconomic Model of Social Responsibility Make All

question 126

Multiple Choice

​Proponents of the socioeconomic model of social responsibility make all of the following arguments to support their position except

• A) ​by being social responsible the company will make more money.
• B) ​being socially responsible is important because the business has the technical,financial,and managerial resources needed to tackle today's complex social issues.
• C) ​by helping resolve social issues,businesses can create a more stable environment for long-term profitability.
• D) ​socially responsible decision making by firms can prevent increased government interventions,which would force businesses to do what they fail to do voluntarily.

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Definitions:

Beta

A measure of the volatility, or systematic risk, of a security or portfolio compared to the market as a whole.

Stock Price

The cost of purchasing a share of a company's stock on the stock market.

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, often with fixed dividends.