The Stakeholder Theory Maintains That

question 69

Multiple Choice

The stakeholder 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 stockholders,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 stake in or 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

Differentiate between fiscal and monetary policy, including their goals and the entities responsible for each.

Explain the process and impact of check clearing in the banking system.

Describe the impact of Federal Reserve actions on commercial banks' reserves and the overall money supply.

Recognize the historical development of the Federal Reserve and its significance in the US banking system.

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Definitions:

Frontal Lobes

Portion of the cerebral cortex lying just behind the forehead; involved in speaking and muscle movements and in making plans and judgments.

Endocrine System

The collection of glands that produce hormones which regulate metabolism, growth and development, tissue function, sexual function, reproduction, sleep, and mood.

Hypothalamus

A region of the brain that regulates important functions, including temperature, hunger, thirst, emotional activity, and circadian rhythms.

FMRI

Functional Magnetic Resonance Imaging, a neuroimaging procedure that measures brain activity by detecting changes associated with blood flow.