Which of the Following Actions Is Consistent with Social Responsibility

question 20

Multiple Choice

Which of the following actions is consistent with social responsibility and is not necessarily inconsistent with stockholder wealth maximization?

• A)Selling a smokestack "scrubber" required by the firm's air pollution policy that is also mandated by law.
• B)Dumping effluent discharge into a river, where it ruins the drinking water of the community around the plant. The installation of machinery to treat the effluents is very expensive.
• C)Investing in a smokestack filter to reduce sulphur-dioxide emissions to decrease the tax being levied on the firm by the state for pollution it produces each year.
• D)Making a large corporate donation to the local community for funding a recreation complex that can be used by the firm's employees only.
• E)Consider taking over the competitor's business in an attempt to establish monopoly for its product in the market.

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Definitions:

Sued

The act of bringing a lawsuit against a person or entity in a court of law.

Sole Proprietorship

A type of enterprise that is owned and run by one person and in which there is no legal distinction between the owner and the business entity.

Business

The practice of making one's living by engaging in commerce, trading, or offering services.

Start

The beginning or initiation of an action, process, or operation.