Question

Cherries on Top, a national ice cream shop, is struggling financially to keep up with the bigger chains. The top executives have decided to close all the stores in the Northeast and Texas, as that will give them an additional one million dollars to put into marketing. This executive is practicing the

A. individual approach.
B. utilitarian approach.
C. moral-rights approach.
D. justice approach.
E. value system approach.

Answer 1

The correct answer is letter "B": utilitarian approach.

Step-by-step explanation:

The utilitarian approach is a corporate practice by which managers make benefit/costs decision attempting to maximize the benefits by minimizing the costs. This approach is implemented to safeguard stakeholders' investments which represents one of the main sources of income for the company to keep their operations up.