In Which of the Following Ways Does the Triple Bottom

question 1

Multiple Choice

In which of the following ways does the triple bottom line approach differ from the balanced scorecard approach?

• A) It lacks any overt consideration of financial performance.
• B) It takes stakeholders, not just shareholders, into account.
• C) It has an explicit ecological dimension.
• D) It measures employee learning and growth.

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Definitions:

Stock Price

The cost of purchasing a share of a company's stock. The price at which a stock is traded on the market, representing the value investors assign to a company.

MM Model

The Modigliani-Miller theorem, proposing that in a perfect market, the value of a firm is unaffected by how it is financed, whether through debt or equity.

Financial Leverage

The use of borrowed funds with a fixed cost to enhance the potential return on investment.

Bankruptcy Risk

The risk that a company will be unable to meet its financial obligations and thus may have to declare bankruptcy.