Which of the Following Statements About Social Contracts Is True

question 19

Multiple Choice

Which of the following statements about social contracts is true?

• A) Businesses are not obligated to fulfill social contracts.
• B) It codifies the expectations of business from society and other stakeholders.
• C) It is as clear-cut as the economic forces a business faces.
• D) It is partly expressed in law,but also resides completely in social values.

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Definitions:

Tangible Asset

Physical and material assets that can be seen, touched, or quantified, such as machinery, buildings, and inventory.

Goodwill

The intangible asset that arises when a business is acquired for more than the fair value of its net identifiable assets.

GAAP

Generally Accepted Accounting Principles; a collection of standardized guidelines and practices for financial accounting used in a particular jurisdiction.