That Corporations Have a Social Responsibility and That Profitability Should

question 10

Multiple Choice

That corporations have a social responsibility and that profitability should be secondary reflects

• A) the narrow view, or invisible hand theory.
• B) the moderate view, or government's hand theory.
• C) the hybrid view, or citizen's hand theory.
• D) the broad view, or good corporate citizenship.

---

Definitions:

Covenant Provisions

Conditions set by lenders in a loan or bond agreement that the borrower must abide by, aimed at protecting the lender's interests.

Credit Risks

This is the risk that a borrower will default on any type of debt by failing to make required payments, impacting lenders and investors.

Credit Analysis

The process of evaluating an applicant's loan request or a corporation's debt issue in order to determine the likelihood of the borrower repaying the loan.

Financial Statement

A written report which quantitatively describes the financial health of a company.