The Stockholder Theory Maintains That

question 105

Multiple Choice

The stockholder theory maintains that:

• A) Companies have ethical responsibilities to all members of society, which allow corporations to exist based on a social contract
• B) Managers are agents of the organization's owners, and their only ethical responsibility is to increase the profits of the business without violating the law or engaging in fraudulent practices
• C) Managers have an ethical responsibility to manage a firm for the benefit of all individuals and groups that have a claim on a company
• D) Managers are agents of the customer, and their only ethical responsibility is to increase the service of the business, without violating the law or engaging in fraudulent practices

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Definitions:

Federal Unemployment

The tax system in the United States that funds state workforce agencies and unemployment insurance.

Federal Income Taxes

Federal Income Taxes are taxes levied by the United States Internal Revenue Service (IRS) on the annual earnings of individuals, corporations, trusts, and other legal entities.

Property Tax Expense

The cost incurred by property owners for taxes levied by local governments, based on the assessed value of property.

Fiscal Year

A 12-month period used for accounting purposes and preparing financial statements, which may not coincide with the calendar year.