Suppose that a study shows that companies that were not socially involved tended to be less profitable than socially involved companies.Which of the following can be concluded?
A)Social involvement definitely causes a company's profits to decrease.
B)Social involvement definitely causes a company's profits to increase.
C)Social involvement may cause a company's profits to increase.
D)Social involvement may cause a company's profits to decrease.

Question

Quizplus · Accepted Answer

The study only shows a correlation between social involvement and profitability, not a causal relationship. Therefore, it is possible that social involvement may lead to increased profitability, but it is also possible that increased profitability leads to more engagement in social initiatives. Thus, the correct conclusion would be that social involvement may cause a company's profits to increase.

Suppose That a Study Shows That Companies That Were Not