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:

Survey

A systematic method of collecting data from a sample of individuals to gather information and insights on various subjects.

Solicitor's Fee

The charges or fees paid for the services of a solicitor, a type of lawyer in some jurisdictions.

Sale

The act of selling something, transferring ownership of a product or service to a buyer for a price.

Purchase

The act of buying goods or services, involving the exchange of money for ownership or use rights.