The Outcomes of Why Acting in a Socially Responsible Manner

question 43

Multiple Choice

The outcomes of why acting in a socially responsible manner is good business, do NOT include

• A)the higher the public profile of a company or brand, the greater the scrutiny of its activities and the higher the potential for it to become a target for pressure group action.
• B)acting in a socially responsible manner nearly always results in higher profits and a higher stock price for shareholders.
• C)to the extent that a company's socially responsible behavior wins applause from consumers and fortifies its reputation, a company may win additional patronage.
• D)some employees feel better about working for a company committed to improving society-a condition that can contribute to lower turnover and better worker productivity.
• E)companies with deservedly good reputations for contributing time and money to the betterment of society are better able to attract and retain employees compared to companies with tarnished reputations.

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Definitions:

Preferred Shares

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

Common Shares

Equity securities that represent ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.

Acquisition

The process of acquiring control of a company by purchasing its shares or assets, effectively resulting in a change of ownership.

Restricted Shares

types of stock which are subject to certain restrictions, typically related to the vesting period, and are not fully transferrable until certain conditions are met.