Which of the Following Statements Concerning a Firm's Quest to Maximize

question 33

Multiple Choice

Which of the following statements concerning a firm's quest to maximize wealth is correct?

• A)In extremely competitive industries, we would expect firms would voluntarily engage in many socially beneficial projects to try to maximize their stocks' values.
• B)Actions that maximize a firm's stock price are inconsistent with maximizing social welfare.
• C)The concepts of social responsibility and ethical responsibility on the part of corporations are completely different and neither is relevant in maximizing stock price.
• D)In a competitive market, if a group of firms does not spend resources making social welfare improvements, but another group does, in general, this will not affect the second group's ability to attract funds.
• E)If government did not mandate socially responsible corporate actions, such as those relating to product safety and fair hiring practices, most firms in competitive markets probably would not pursue such policies voluntarily.

---

Definitions:

Mythological Creature

A mythical being or legendary animal often featured in folklore or cultural stories, known for its unique powers or characteristics.

Folklore

The traditional beliefs, customs, stories, songs, and practices of a culture, passed through generations by word of mouth.

Incarceration Rates

The number of individuals within a population who are confined in prison or jail, expressed per 100,000 of the population.

Overrepresented

The state of being represented in a disproportionately high quantity relative to the actual population or occurrence rate.