When Deciding to Engage in Corporate Social Responsibility, a Key

question 14

Multiple Choice

When deciding to engage in corporate social responsibility, a key factor when selecting activities is

• A) how the social activity relates to the business activities of the corporation.
• B) how much free publicity the corporation will get from the social activity.
• C) whether the corporation is required to do the social activity by law.
• D) whether the activity will result in short-term profit increases.

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Definitions:

Corporation

A legal entity owned by shareholders with rights and liabilities separate from those of its owners, and which pays taxes on earnings.

Fiscal Year-End

Fiscal Year-End refers to the last day of a company's accounting period, which is used for financial reporting and tax purposes and can vary but often ends on December 31.

Accrual Basis

An accounting method where income and expenses are recorded when they are earned or incurred, regardless of when the cash transaction occurs.

Form 1120

Form 1120 is the tax form used by corporations in the United States to report their income, gains, losses, deductions, and credits to the IRS.