If a Firm Engages in Activities That Simultaneously Are Profit-Optimizing

question 23

Multiple Choice

If a firm engages in activities that simultaneously are profit-optimizing and socially responsible:

• A) Economists that adopt the stakeholder theory, but not the shareholder theory, will agree with its conduct
• B) Economists that adopt the shareholder theory, but not the stakeholder theory, will agree with its conduct
• C) Economists uniformly will criticize its claims of social responsibility as being highly unlikely, if not impossible
• D) Its behavior is commendable in accordance with both the shareholder and the stakeholder theories

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Definitions:

Deoxyribose

A sugar component of DNA, having one less oxygen atom than ribose, the sugar component of RNA.

Monosaccharide

The simplest form of carbohydrates, consisting of a single sugar molecule such as glucose or fructose.

Polysaccharide

A complex carbohydrate composed of long chains of monosaccharide units bound together by glycosidic linkages, serving various structural and energy storage roles in living organisms.

Cellulose

Cellulose is an organic compound and a polysaccharide consisting of a linear chain of several hundred to many thousands of β(1→4) linked D-glucose units, primarily found in the cell walls of plants.