Do corporate decisions that increase the value of the firm's equity benefit society as a whole?
A)Yes,as long as the value of the firm's equity increases,society is better off.
B)Yes,as long as the increase in the value of the firm's equity does not come at the expense of others.
C)No,any gain in the value of the firm's equity is always less than the cost to society.
D)No,any gains in the value of the firm's equity are perfectly offset by societal costs.

Question

Quizplus · Accepted Answer

Corporate decisions that increase the value of the firm's equity can benefit society as a whole if the increase is achieved through socially responsible actions and doesn't come at the expense of others. For example, if a company invests in research and development to create innovative products or services, this can benefit society by providing new and useful solutions to problems. Similarly, if a company adopts ethical and sustainable practices in its operations, this can benefit society by reducing negative externalities such as pollution or exploitation of workers. However, if the increase in equity value is achieved through actions that harm society, such as engaging in monopolistic practices, then society will not benefit. Thus, ultimately it depends on the nature of the corporate decision and its impact on society.

Do Corporate Decisions That Increase the Value of the Firm's