Despite Its Shortcomings,a Compelling Argument in Favor of the Stakeholder

question 30

Multiple Choice

Despite its shortcomings,a compelling argument in favor of the stakeholder model is that:

• A) it isolates business from the broader society and defines the duties of a business as one of profit making.
• B) it has distinguished proponents like Adam Smith and Karl Marx.
• C) it clearly distinguishes between primary and secondary stakeholders making it easier for a corporation to satisfy each of them.
• D) it is the ethical way to manage because stakeholders have moral rights that grow from the way powerful corporations affect them.

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Definitions:

Useful Life

The projected timeframe during which an asset is anticipated to remain functional for its designed use.

Report Form Balance Sheet

A type of balance sheet presentation where the assets, liabilities, and equity sections are presented vertically or in a list format.

Classified Balance Sheet

A balance sheet that organizes assets and liabilities into current and long-term categories.

Account Form Balance Sheet

A type of balance sheet presentation where assets are listed on the left side and liabilities and equity are listed on the right side.