Business Organizations Have Long Recognized That Primarily Using Financial Measures

question 51

Multiple Choice

Business organizations have long recognized that primarily using financial measures such as sales or profitability to measure performance often fails to provide information about the factors that result in success. One of these factors is sustainability. Which of the following is not a pillar of sustainability identified in chapter 5?

• A) Phycological
• B) Economic
• C) Social
• D) Environmental

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Definitions:

Business Organization

A business organization is a legal and operational structure created to conduct commercial activities, such as corporations, partnerships, and sole proprietorships.

Liabilities

Financial obligations or debts that an entity owes to others, which must be settled over time through the transfer of assets or services.

Assets

Resources owned by a business that have economic value and can be converted into cash or provide future benefits.

Borrowing Money

Acquiring funds from a lender under the condition of returning the principal sum along with agreed interest, used by individuals or organizations to finance their needs.