If a Company Does Not Care About Community Expectations

question 12

Multiple Choice

If a company does not care about community expectations:

• A)It should honor them anyway,to a certain extent,because of the threat that legislation will impose social obligations on them.
• B)It should ignore them completely because a company's ethical obligation is to maximize profits to shareholders.
• C)It should ignore them completely because a company's only obligation is to obey the law.
• D)It should ignore them completely because it is the company's choice whether to comply with the desires of the community.
• E)It should inform the community it will not honor its expectations because the company has a moral obligation to provide this information.

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Definitions:

Air Canada

The largest airline of Canada, serving domestic and international routes and offering cargo and passenger services.

Unsystematic Risk

The risk associated with a specific issuer or sector, which can be mitigated through diversification.

International Securities

Financial instruments, such as stocks and bonds, that are traded on global markets and denominated in various currencies.