A Corporation with Profit Goals Can Have CSR If ______

question 7

Multiple Choice

A corporation with profit goals can have CSR if ______.

• A)they treat their customers with responsibility
• B)social objectives are added while still in pursuit of making a profit
• C)they maximize their charitable contributions
• D)they give a portion of their profits to charities such as the United Way

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Definitions:

Imperfect Information

A situation in which all parties in a transaction do not have the same information, leading to inefficiencies in markets.

Market Efficiency

The degree to which stock prices reflect all available, relevant information, making it impossible to consistently achieve higher returns on investment.

Truth-in-Advertising

Legal requirements and ethical guidelines that ensure advertising is not misleading or false, protecting consumers.

External Cost

A cost that is not borne by the producer or consumer directly involved in a transaction, but rather by a third party or society as a whole, such as pollution.