Which of the Following Is FALSE as It Concerns the Merits

question 17

Multiple Choice

Which 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.

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Definitions:

TFC

Total Fixed Cost, which is the sum of all costs that remain constant regardless of the level of production or output.

TVC

Total Variable Costs, which are the costs that change with the level of production or service delivery.

MC

Refers to Marginal Cost, the extra cost incurred from producing one more unit of a good or service.

Profit-Maximizing

Profit-Maximizing refers to the point at which a firm achieves the highest possible profit through the manipulation of production or pricing strategies.