Reasons why a business might engage in activities that are less profitable to itself but which are beneficial to society are:
A) because of expectations of future legislation.
B) to market itself as a good citizen.
C) to improve liquidity.
D) A and B

Question

Quizplus · Accepted Answer

Engaging in activities that are less profitable but beneficial to society can help a business to show its commitment to social responsibility and improve its image as a good corporate citizen. This can help in marketing the business and attracting customers who value socially responsible behavior. Additionally, there may be expectations of future legislation that could make such activities necessary for legal compliance, making it a strategic business decision to engage in them early on. Improving liquidity, however, is not a likely reason for a business to engage in less profitable activities that are beneficial to society.

Reasons Why a Business Might Engage in Activities That Are