Question 4
Business Environment and Social ResponsibilityA demonstration of social responsibility by a business is the payment of
- A.taxes to government
- B.dividends to shareholders
- C.interest on loans
- D.premium for insurance.
Show the answer and explanation
Answer: A (taxes to government)
Explanation
Taxes go to the government to provide services for the whole community, so paying them shows the firm's duty to society. Dividends, interest and premiums are paid to owners, lenders and insurers.