"We Are Busy Producing and Marketing Profitable Products for Society

question 206

Multiple Choice

"We are busy producing and marketing profitable products for society to enjoy! Now you want us to provide legal services, day-care centers, and counseling for AIDS victims and alcohol and drug abusers. If we do all these things, what role will the government, church, and family play?" exclaimed the vice president of Milam Corporation. What persuasive argument would you use to influence this manager to become more socially responsive?

• A)Business has the technical, financial, and managerial resources needed to tackle today's complex economic issues.
• B)Social problems affect society in general, so individual businesses probably should not be expected to solve these problems.
• C)By helping to solve social issues, business can create a more stable environment for long-term profitability.
• D)Socially responsible decision making by business firms will not prevent increased government intervention, which only forces businesses to do what they fail to do voluntarily.
• E)Corporate time, money, and talent should be used to maximize profits, not to solve society's problems.

Grasp the concept of Weber's law and its application to sensory perception.

Understand the importance of perceptual set and how it influences our interpretation of sensory information.

Recognize the influence of schemas and top-down processing in interpreting ambiguous sensations.

Gain insight into the effects and limitations of subliminal stimuli and priming on perception and behavior.

---

Definitions:

Striking Price

The predetermined price at which the holder of an option contract can buy (call) or sell (put) the underlying asset.

Callable Bonds

Callable bonds are bonds that can be redeemed by the issuer prior to their maturity date at a specified call price.

Convertible Bonds

Bonds that can be converted into a predetermined number of the issuing company's shares at certain times during its life, usually at the discretion of the bondholder.

Warrants

Financial derivatives that give the holder the right, but not the obligation, to buy or sell a security, usually equity, at a predetermined price before expiration.