According to the Concept of Social Responsibility, a Firm Has

question 252

Multiple Choice

According to the concept of social responsibility, a firm has a duty to:

• A) communicate regularly with the public.
• B) satisfy consumer needs at any cost.
• C) place profit above all other considerations.
• D) place customer satisfaction above all other considerations.
• E) conduct business in a way that is good for society as a whole, both now and for the future.

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Definitions:

Plowback Rate

The percentage of profits a company retains and reinvests in its operations rather than distributing to shareholders as dividends.

Dividend-Payout Rate

This term represents the proportion of earnings a company pays its shareholders in dividends, showcasing a strategy of sharing profits.

P/E Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to evaluate if the stock is over or underpriced.

Intrinsic Value

The perceived or calculated true value of an asset, based on fundamental analysis, irrespective of its current market price.