What is a company's unique responsibility to its stockholders?
A) to make a profit
B) to produce products that the public will find useful
C) to provide jobs to workers
D) to create a stable balance sheet between income and expenses
E) to be a good corporate neighbor

Question

Quizplus · Accepted Answer

A company's primary responsibility to its stockholders is to make a profit by generating returns on their investment. While providing useful products, jobs, and being a good corporate neighbor are important, they are secondary to the company's main responsibility to its stakeholders. Creating a stable balance sheet is also important for maintaining profitability, but it is not the company's unique responsibility to its stockholders.

What Is a Company's Unique Responsibility to Its Stockholders