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

Which statement aligns with profit maximization?

1. Businesses have obligations to stakeholders.

2. Social issues are not the concern of businesses.

3. Businesses have obligations to their employees, creditors, and customers.

4. Businesses should focus on ethical dilemmas.

The correct answer is: Social issues are not the concern of businesses.

The concept of profit maximization centers around the idea that the primary goal of a business is to generate the highest possible profit for its shareholders. The statement that aligns with this concept asserts that social issues are not the concern of businesses. This viewpoint suggests that businesses should concentrate exclusively on their financial performance rather than engaging in discussions or actions related to social responsibility or ethical considerations, which could detract from profit generation. In this context, prioritizing profit over social issues reflects a traditional economic perspective that emphasizes financial outcomes as the primary measure of success. The other statements recognized in the question introduce responsibilities toward various stakeholders, such as obligations to employees, customers, and the broader community, which are essential considerations in contemporary business practices. However, they do not align with the narrow focus on profit maximization as indicated in the correct answer. Thus, while corporate social responsibility and ethical considerations are increasingly important in modern business philosophies, the statement chosen directly reflects a profit-centric mindset.