The Social Responsibility Approach Views Business as Having ________

question 31

Multiple Choice

The social responsibility approach views business as having ________.

• A)the obligation to anticipate potential social problems
• B)societal goals and the obligation to anticipate potential social problems,but lacking economic goals
• C)both societal and economic goals as well as the obligation to anticipate potential social problems
• D)primarily economic purposes and confines social responsibility activity mainly to existing legislation
• E)both organizational and societal goals

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Definitions:

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows or in determining the interest rate charged to financial institutions for loans from the Federal Reserve.

Pension Plans

Financial programs established by employers to provide retirement income to employees.

Current Accounting Standards

The latest guidelines and principles established by regulatory bodies for the preparation and presentation of financial statements.

Smoothing

An accounting practice where companies level out peaks and troughs in their financial statements over time to present a more consistent financial performance.