Which of the Following Statements Concerning a Firm's Quest to Maximize

question 5

Multiple Choice

Which of the following statements concerning a firm's quest to maximize wealth is correct?

• A)In extremely competitive industries, we would expect firms would voluntarily engage in many socially beneficial projects to try to maximize their stocks' values.
• B)Actions that maximize a firm's stock price are inconsistent with maximizing social welfare.
• C)The concepts of social responsibility and ethical responsibility on the part of corporations are completely different and neither is relevant in maximizing stock price.
• D)In a competitive market, if a group of firms does not spend resources making social welfare improvements, but another group does, in general, this will not affect the second group's ability to attract funds.
• E)If the government did not mandate socially responsible corporate actions, such as those relating to product safety and fair hiring practices, most firms in competitive markets probably would not pursue such policies voluntarily.

Comprehend the role of government policies and public assistance in addressing poverty.

Analyze the distribution of income among different segments of the population.

Acknowledge the global context of poverty and economic disparities.

Interpret the impact of social security benefits and the earned income tax credit on the poor.

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Definitions:

Human Strengths

The inherent potentials and positive qualities, such as resilience, courage, and empathy, that can be developed to enhance personal and collective well-being.

Virtues

Moral excellences or admirable qualities that guide behavior and actions, often seen as the foundation for ethical conduct.

Acquired Immune Deficiency Syndrome

A chronic, potentially life-threatening condition caused by the human immunodeficiency virus (HIV) that damages the immune system, impairing the body's ability to fight off organisms that cause disease.

Heart Disease

A broad term covering any disorder of the heart, including coronary artery disease, heart attacks, and congenital heart defects.