business ethics

Which economic concept is associated with Adam Smith and is metaphorically used to describe the unintended social benefits of individual pursuit of self-interest?

• Invisible Hand

• Laissez-faire

• Social Contract

• Utilitarianism

According to the Stockholder or Shareholder Theory, what is the primary obligation of a company?

• Increasing profits for shareholders

• Enhancing employee satisfaction

• Enhancing employee satisfaction

• Promoting government regulations

Who is famously associated with the assertion that a company's social responsibility is to increase profits?

• Milton Friedman

• Adam Smith

• John Maynard Keynes

• Karl Marx

In the context of the Stockholder Theory, which stakeholder group is primarily emphasized?

• Shareholders

• Employees

• Suppliers

• Competitors

What criticism is frequently directed towards the Stockholder Theory?

• Singular focus on profit maximization

• Lack of attention to government regulations

• Overemphasis on employee welfare

• Disregard for customer satisfaction

What does the case study of Martin Shkreli illustrate about the Stockholder Theory?

• The importance of fair wages for employees

• Potential negative consequences of profit maximization

• The need for government intervention in markets

• The benefits of transparent communication with the media

Which stakeholder group is NOT typically considered in the evaluation of a company's practices according to the provided text?

• Employees

• Activist groups

• Regulators

• Competitors

According to the Stockholder Theory, what role does profit maximization play in business operations?

• It is the sole purpose of business activity

• It should be balanced with social responsibility

• It is irrelevant to the success of a company

• It is secondary to employee satisfaction

How does the concept of the Invisible Hand relate to the Stockholder Theory?

• It emphasizes the importance of government intervention in markets

• It suggests that profit-seeking behavior benefits society as a whole

• It highlights the need for ethical considerations in business decisions

• It promotes the idea of shareholder activism in corporate governance

In the context of the Stockholder Theory, what is the ultimate determinant of a company's success?

• Employee satisfaction

• Profitability

• Social impact

• Government regulations