A leading proponent of the classical view argues that anytime managers decide on their own to spend their organization's resources for the "social good," they are__________ .
A) following governmental regulations
B) adding to the costs of doing business
C) contributing social benefits in the name of goodwill
D) helping make society a better place for everyone to live

Question

Quizplus · Accepted Answer

According to the classical view, the sole responsibility of business is to maximize profits for the shareholders. Therefore, when managers decide to spend the organization's resources for the "social good," they are adding to the costs of doing business, which may result in lower profits for the shareholders.

A Leading Proponent of the Classical View Argues That Anytime