PrepTest 59, Section 2, Question 2
Price: A corporation's primary responsibility is to its shareholders. They are its most important constituency because they take the greatest risks. If the corporation goes bankrupt, they lose their investment.
Price: A corporation's primary responsibility is to its shareholders. They are its most important constituency because they take the greatest risks. If the corporation goes bankrupt, they lose their investment.
Albrecht: Shareholders typically have diversified investment portfolios. For employees, however, the well-being of the corporation for which they have chosen to work represents their very livelihood. The corporation's primary responsibility should be to them.
Price: A corporation's primary responsibility is to its shareholders. They are its most important constituency because they take the greatest risks. If the corporation goes bankrupt, they lose their investment.
Albrecht: Shareholders typically have diversified investment portfolios. For employees, however, the well-being of the corporation for which they have chosen to work represents their very livelihood. The corporation's primary responsibility should be to them.
Price: A corporation's primary responsibility is to its shareholders. They are its most important constituency because they take the greatest risks. If the corporation goes bankrupt, they lose their investment.
On the basis of their statements, Price and Albrecht are committed to disagreeing about whether
corporations have a responsibility to their shareholders
corporations are responsible for the welfare of their employees
means should be provided for a corporation's investors to recoup their losses if the corporation goes bankrupt
a corporation's shareholders have more at stake than anyone else does in the corporation's success or failure
the livelihood of some of the shareholders depends on the corporation's success
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