Question

A restaurant chain sponsors a charity that provides for children with cancer to be treated with their parents present. How would the use of company funds for this purpose be justified by a business whose goal is to maximize profit? a. The funds dedicated to this purpose represent a very small share of profits. b. The money spent is worth the boost it gives to corporate image. c. The money will be spent efficiently to cure cancer.

Answer 1

A restaurants charity can be called as its Corporate social responsibility activities. These activities are over and above what the law of the land has prescribed and generally motivated to show that the company really care about the society and profit is not the only motive of their operations. This, in turn, helps the company to further increase profit perspective.

The correct answer to this question is "B". The money spent is worth the boost it gives to the corporate image.