In: Operations Management
When undertaking social initiatives, a company:
Multiple Choice
Must take out social responsibility insurance.
Will always receive long-term profits.
May sacrifice short-term profits.
Risks going bankrupt in nearly all cases.
In social initiatives, there is no risk of bankruptcy; nor there is guarantee that firm would receive long term profits. There is also no provision of social responsibility insurance. However, firms have to forego profits for a short period of time. Therefore, answer for this question is May sacrifice short-term profits