The View That Businesses Are a Social and Legal Construct

question 119

Multiple Choice

The view that businesses are a social and legal construct and not purely private institutions is consistent with:

• A)Social movement unionism.
• B)The shareholder model of corporate governance.
• C)The corporate social responsibility perspective.
• D)Profit maximization as the only true business concern.

---

Definitions:

Present Value

Today's value of a future money sum or series of cash flows, estimated using an agreed upon return rate.

Actuarial Information

Data and analysis related to the calculation of insurance risks and premiums, often involving life expectancy, health risks, and financial implications.

Bond Issue

The process by which a company or governmental entity raises funds by selling bonds to investors, which are debt securities obligating the issuer to pay interest and repay principal at a later date.

Effective Interest Method

An accounting technique used to allocate the bond premium or discount over the life of the bond in a way that results in a constant rate of interest.