Which One of the Following Is Not a Part of the Business

question 12

Multiple Choice

Which one of the following is not a part of the business case for why companies should act in a socially responsible manner?

• A)Every business has a moral duty to be a good corporate citizen.
• B)Acting in a socially responsible manner reduces the risk of reputation-damaging incidents.
• C)Acting in a socially responsible manner is in the overall best interest of shareholders.
• D)To the extent that a company's socially responsible behavior wins applause from consumers and fortifies its reputation,a company may win additional patronage.
• E)Acting in a socially responsible manner can generate internal benefits (as concerns employee recruiting,workforce retention,training,and improved worker productivity).

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Definitions:

Direct Labor-Hours

The total hours of labor directly involved in producing goods or services, which is often used as a base for allocating overhead costs.

Variable Manufacturing Overhead

Costs that vary with the level of manufacturing activity, including items like indirect materials and utilities.

Fixed Manufacturing Overhead

These are the manufacturing costs that do not vary with the volume of production, including costs like rent, insurance, and salaries for certain employees.

Machine-Hours

The total hours that machinery is operational and in use on the production floor.