Use the Following Two Statements to Answer This Question

question 103

Multiple Choice

Use the following two statements to answer this question:

• A) I and II are correct.
• B) I and II are incorrect.
• C) I is correct, II is incorrect.
• D) I is incorrect, II is correct.
• i.Ex post returns are expected returns while ex ante returns are future returns.
• i.Risk is the possibility of incurring harm.

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Definitions:

Profit Maximization

The process or strategy focused on increasing the net profit of a business by either reducing costs, increasing revenue, or both.

Enlightened Corporate Self-Interest

A business philosophy suggesting that companies can achieve better long-term performance by acting in a socially responsible manner.

Goodwill

The expected continuance of public patronage of a business.

Ethical System

A set of principles or guidelines designed to direct individual or collective behavior towards moral and ethical decision-making.