The Classical View of Social Responsibility Is That a For-Profit

question 103

Multiple Choice

The classical view of social responsibility is that a for-profit organization's responsibility is ________.

• A)to help as many people as possible
• B)to maximize both profits and the general welfare
• C)to maximize profits only
• D)to maximize opportunity for all

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Definitions:

Controlling Account

A general ledger account that summarizes the total balances of several subsidiary accounts, providing an overview and facilitating reconciliation.

Subsidiary Ledger

A detailed ledger that contains the individual accounts related to a specific main account in the general ledger, used to organize and manage specific types of transactions.

Financial Statement

Reports that convey the financial activities and condition of a business, including the balance sheet, income statement, and cash flow statement.

Normal Balance

The typical side (debit or credit) on which an account increases, based on its classification in the accounting equation.