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Refer to the Scenario Below to Answer the Questions That

question 103

Multiple Choice

Refer to the Scenario below to answer the questions that follow.
Opposing Views of Social Responsibility (Scenario)
The board of directors of the Four Forks Generating Corporation is meeting to consider the construction of a new electrical generation facility near the Four Forks River.Director Appleton prefers a coal-burning plant because it promises to be the most profitable alternative.Over the short term at least,a coal plant will be by far the least expensive facility to build and operate.Coal is cheap and the considerable pollution from the plant won't affect anything within hundreds of miles from the plant.Director Estrella wants a nuclear plant to be located 30 kilometres upriver from the biggest city in the area.Nuclear power is cleaner than coal.Completely safeguarding the community against accidents in the plant or from disposing of toxic waste could be very expensive.However,Estrella has discovered that the job can be done much more cheaply by cutting some corners-while still strictly following all laws-and creating some additional risk for the community.Director Jossleman supports the most expensive option of the three.She wants a wind farm to be built along the banks of the river on top of a ridge.The wind turbines produce absolutely no pollution and pose no threat to the community or the environment.They are expensive to build and to operate at the current time because they require elaborate backup systems to function when the wind isn't blowing.
-Director Appleton exhibits which of the following social responsibility positions?

Definitions:

Investment Sale

The process of selling securities or assets with the aim of generating returns such as capital gains or income.

Parent Company

A corporation that owns enough voting stock in another corporation to control its board of directors and therefore its policies and management.

Subsidiary

A company that is controlled by another entity, known as the parent company, through ownership of more than half of its voting stock or through other means.

Consolidated Net Income

The total profit of a parent company and its subsidiaries after all expenses, including those of subsidiary companies, are subtracted.