Which of the Following Arguments Suggests Business Should Stay Out

question 61

Multiple Choice

Which of the following arguments suggests business should stay out of politics?

• A) Politics should be left to politicians, and business should be publicly neutral.
• B) Businesspersons are not necessarily qualified to deal with many of the social issues the government must address.
• C) Business is already accused of exerting too much power in society, and the involvement of businesspersons in politics could upset the pluralistic balance in society.
• D) Business involvement might also be interpreted as being biased, thus having an adverse effect on customers or shareholders, or conflicts of interest might exist.
• E) All of the above.

Know the implications of following a functional finance approach to federal budgeting.

Understand the impact of state and local government financing methods on public projects.

Grasp the concepts of crowding in and crowding out in the context of government spending and private investment.

Recognize the role of discretionary fiscal policy in budget deficits during various economic conditions.

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Definitions:

Strategy

A plan of action designed to achieve a long-term or overall aim, typically involving the allocation of resources and decision-making processes.

Corporate Level

Relating to high-level strategic decisions made at the upper echelons of a business organization.

Top Management

The highest level of executives and decision-makers in an organization, responsible for determining its overarching strategy and policies.

Directive

An authoritative instruction or official order given by a person or body with power.