Which One of the Following Is FALSE as It Concerns

question 50

Multiple Choice

Which one of the following is FALSE as it concerns the merits of why acting in a socially responsible manner is good business?

• A) The higher the public profile of a company or brand,the greater the scrutiny of its activities and the higher the potential for it to become a target for pressure group action.
• B) Acting in a socially responsible manner nearly always results in higher profits and a higher stock price for shareholders.
• C) To the extent that a company's socially responsible behavior wins applause from consumers and fortifies its reputation,a company may win additional patronage.
• D) Some employees feel better about working for a company committed to improving society-a condition that can contribute to lower turnover and better worker productivity.
• E) Companies with deservedly good reputations for contributing time and money to the betterment of society are better able to attract and retain employees compared to companies with tarnished reputations.

---

Definitions:

Required Rate

Often used in reference to the minimum acceptable return on investment or the minimum discount rate used in net present value calculations.

Internal Rate of Return

A metric used in financial analysis to estimate the profitability of potential investments, calculated as the rate of return that makes the net present value of all cash flows from a particular project equal to zero.

Initial Investment

The amount of money used to start a project, purchase an asset, or initiate operations.

Cash Inflows

Money or funds entering a business from various sources like sales, investments, or financing.