Which of the Following Responsibilities of Business Did Pork Producer

question 32

Multiple Choice

Which of the following responsibilities of business did Pork producer Smithfield Foods take on by discontinuing the practice of confining sows in gestation crates during pregnancy, conforming to external expectations though not legally required?

• A)Financial responsibility
• B)Economic responsibility
• C)Ethical responsibility
• D)Legal responsibility
• E)Philanthropic responsibility

---

Definitions:

Social Welfare

A holistic measure of the well-being and quality of life of individuals and groups within a society.

Rights To Pollute

Permits or allowances that grant entities the authorization to emit certain amounts of pollutants, often used in regulatory systems to control environmental damage.

Coase Theorem

The Coase Theorem postulates that if property rights are well-defined and transaction costs are low, parties will negotiate privately to correct externalities and allocate resources efficiently.

Externalities

Externalities are unintended side effects of economic activity affecting third parties not directly involved in the transaction, which can be either positive or negative.