How Does the Government Affect the Idea of Social Responsibility

question 74

Multiple Choice

How does the government affect the idea of social responsibility in a planned economy?

• A) The government requires higher stakeholder returns.
• B) The government passes laws to make sure business interests do not damage society.
• C) The government heavily regulates business activities to ensure the business supports social ideals.
• D) The government attempts to offset small business restrictions.
• E) The government limits regulations in exchange for planned giving.

---

Definitions:

Comparative Financial Statements

Financial statements that present the financial position, results of operations, and cash flows of an entity for multiple periods side-by-side for comparison.

Financial Statements

Financial statements are comprehensive reports created to provide insights into a company's financial performance, position, cash flows, and changes in equity over a specific period, typically including the balance sheet, income statement, statement of cash flows, and statement of changes in equity.

Vertical Analysis

A financial analysis technique that presents each item in a financial statement as a percentage of a base figure.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues.