Which of the Following Statements Is Correct

question 62

Multiple Choice

Which of the following statements is correct?

• A) The ability of firms to engage in socially beneficial projects that involve voluntary costs is constrained by competition and the need of firms to attract capital at low cost.
• B) The 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 do not spend resources making social welfare improvements,but another group does,in general,this will not affect the second group's ability to attract capital.
• E) If government did not mandate socially responsible corporate actions,such as those relating to product safety and fair hiring practices,most firms in competitive markets would still pursue such policies voluntarily.

---

Definitions:

Colic

A condition seen in infants, marked by periods of intense, unexplainable crying for more than three hours a day, more than three days a week, for three weeks or more.

Pacifier

A device given to infants to suck on for comfort, which can help soothe them.

Rickets

A bone disorder caused by vitamin D, calcium, or phosphate deficiency, leading to softening and weakening of the bones in children.

Vitamin D

A fat-soluble vitamin that helps the body absorb calcium and phosphorus; important for bone health.