Please answer all4. Financial value of the firm increases when the firm generates economic returns, in the context of its desired social engagement, in excess of its __________.Group of answer choicesa. Fixed costsb. Cost of capitalc. Variable costsd. Opportunity costs 5. David was having a heated argument with Sue that the business should consider more than shareholders when making it business decisions. David was reflecting Group of answer choicesa. Profit maximizationb. Stakeholder theoryc. The learning curved. Microeconomics equilibrium 6. In the short run, a firm’s decision to shut down should not take into consideration Group of answer choicesa. Fixed costsb. Marginal costsc. Variable costsd. Avoidable costs 7. According to the “Shared Value” article by Porter and Kramer, which of the following is NOT a key principle in developing a shared value approach within a firm? Group of answer choicesa. Enabling local cluster developmentb. Reconceiving products and marketsc. Redefining productivity in value chainsd. Engaging employees in determining societal approaches

Answered: Financial value of the firm increases…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please answer all

4. Financial value of the firm increases when the firm generates economic returns, in the context of its desired social engagement, in excess of its __________.

Group of answer choices

a. Fixed costs

b. Cost of capital

c. Variable costs

d. Opportunity costs

5. David was having a heated argument with Sue that the business should consider more than shareholders when making it business decisions. David was reflecting

Group of answer choices

a. Profit maximization

b. Stakeholder theory

c. The learning curve

d. Microeconomics equilibrium

In the short run, a firm’s decision to shut down should not take into consideration

Group of answer choices

a. Fixed costs

b. Marginal costs

c. Variable costs

d. Avoidable costs

7. According to the “Shared Value” article by Porter and Kramer, which of the following is NOT a key principle in developing a shared value approach within a firm?

Group of answer choices

a. Enabling local cluster development

b. Reconceiving products and markets

c. Redefining productivity in value chains

d. Engaging employees in determining societal approaches

Expert Solution

Step 1

The value that in turn determines the well-being and health of a firm during the long run depicts the business value of the firm.

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