According to the private property defense of the classical model of corporate social responsibility, managers who use corporate funds for projects that are not directly devoted to maximizing profits are stealing from their owners. Which statement supports this view?
A)Property rights are restricted when they conflict with the basic rules of society as embodied in law and custom.
B)The connection between ownership and control that exists for personal property does not legally exist for corporate property.
C)Investors buy their stocks with the hope of maximizing return on their investment.
D)Stockholders in publicly traded corporations are better understood as investors rather than owners.

Question

Quizplus · Accepted Answer

The statement that investors buy their stocks with the hope of maximizing return on their investment supports the view that managers should focus on profit maximization, as using funds for other purposes could be seen as not aligning with the investors' goals, thus supporting the private property defense argument.

According to the Private Property Defense of the Classical Model