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:

Autobiographical

Pertaining to the events of one's own life history, often depicted in personal writings, narratives, or memoirs.

Dishabituation

A renewal of attention or a response to a stimulus that had previously become familiar through habituation.

Stimulus

An external factor or event that provokes a specific functional reaction in an organ or tissue.

Renewed Interest

A revived or rekindled focus and curiosity in a particular subject, activity, or issue that perhaps had been previously set aside or overlooked.