Bachelor of General Studies (BGS) Degree Practice Exam

Under the concept of enlightened self-interest, what do businesses aim to achieve?

1. Only profit maximization

2. Community loyalty

3. A balance of economic, legal, and social obligations

4. Exclusive market dominance

The correct answer is: A balance of economic, legal, and social obligations

Enlightened self-interest is a concept that recognizes the interconnectedness of businesses, society, and the environment. In this framework, businesses understand that their long-term success and profitability depend on more than just immediate gains. Instead of focusing solely on profit maximization or exclusive market dominance, enlightened self-interest encourages companies to consider a balance of economic, legal, and social obligations. This entails conducting business in a way that is not only profitable but also responsible and ethical. By adhering to legal requirements while also acting socially and environmentally conscious, businesses can foster goodwill among customers, employees, and the community. This, in turn, can lead to sustainable profitability through improved brand loyalty, employee retention, and community support, creating a virtuous cycle that benefits both the business and society at large. The other alternatives do not capture this balanced approach. Focusing only on profit maximization ignores the necessary relationship a business has with its stakeholders. Aiming solely for community loyalty overlooks the importance of profit and sustainability as core business objectives. Exclusive market dominance can lead to anti-competitive behaviors, which may harm the broader economy and lead to regulatory challenges. Therefore, the most comprehensive and accurate representation of enlightened self-interest is indeed the pursuit of a balance among economic, legal, and social