The Amount of Xylene That Can Be Used in Household

question 86

Multiple Choice

The amount of xylene that can be used in household paint is legally limited to 0.03 percent. Anything beyond this amount is hazardous to health and the environment, and considered a legal offense. Consequently, CW Paints Corp. has vouched to make its products as safe as possible. Therefore, it manufactures xylene-free paints even though this increases its costs and reduces the dividends paid to its shareholders in the long run. Which of the following responsibilities is CW Paints Corp. primarily compromising in this scenario?

• A) legal responsibilities toward the government
• B) economic responsibilities toward its shareholders
• C) philanthropic responsibilities toward the local community
• D) ethical responsibilities toward the society

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Definitions:

Promoter

A person or company that finances or organizes events, especially in entertainment or sports.

Personally Liable

Being individually responsible for a debt or legal obligation, meaning personal assets can be used to satisfy the debt if necessary.

Personal Liability

The legal responsibility of an individual to pay debts from personal assets, not protected by a corporation or LLC.

Separate Bank Accounts

Individual bank accounts maintained by parties (such as spouses) for their personal use, distinct from joint accounts.