Being Socially Responsible Is Generally Considered

question 21

Multiple Choice

Being socially responsible is generally considered

• A) a good thing to do only if a company is profitable.
• B) inappropriate for most firms in today's challenging markets.
• C) beyond the norms of corporate ethical behavior.
• D) a necessary part of every firm's strategy.
• E) the responsibility of corporate-sponsored foundations who can effectively concentrate a firm's good deeds.

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Definitions:

Opportunity Costs

The cost of an alternative that must be foregone to pursue a certain action. Put another way, the benefits you could have received by taking an alternative action.

Make Total Cost

An approach to calculate the comprehensive cost of manufacturing a product, including raw materials, labor, and overheads.

Buy Total Cost

The total expense incurred to purchase an item or service, including the purchase price and any additional fees or expenses.

Variable Expenses

Costs that vary in total in direct proportion to changes in business activity levels or volumes, such as sales commissions or raw material costs.