Future Business Leaders of America (FBLA) Business Management Practice Test

What does trusteeship management emphasize?

1. Social issues are not the concern of businesses.

2. Businesses have obligations to stakeholders.

3. Businesses must work independently of social concerns.

4. Profit maximization above all else.

The correct answer is: Businesses have obligations to stakeholders.

Trusteeship management emphasizes that businesses have obligations to stakeholders, which includes not only shareholders but also employees, customers, suppliers, and the broader community. This concept is rooted in the idea that a company should act as a steward or trustee for the resources and relationships it manages. By recognizing these obligations, businesses can create a more sustainable and ethical approach to management, which ultimately can lead to long-term success and profitability. Prioritizing stakeholder interests often involves balancing various social, environmental, and economic factors, ensuring that the business operates responsibly and contributes positively to society. This perspective fosters trust and can enhance a company’s reputation, which in turn can drive loyalty and commitment from both employees and customers. The focus on stakeholder relationships contrasts sharply with narrower views that prioritize profit maximization or discourage consideration of social issues, which could overlook the broader context in which a business operates.