Being Economically Responsible Is the Most Basic Social Responsibility of Any

question 31

Multiple Choice

Being economically responsible is the most basic social responsibility of any business. This responsibility has the most immediate effect on:

• A) customers.
• B) shareholders.
• C) the government.
• D) the community.
• E) all stakeholders.

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Definitions:

Book Value

The value of an asset according to its balance sheet account balance, taking into account the cost of the asset less any depreciation, amortization, or impairment costs.

Fair Value

The financial return from selling an asset or the financial obligation to cover a liability in a transaction among market entities at the point of appraisal.

Goodwill

Goodwill is an intangible asset that arises when a business is purchased for more than the fair value of its net assets, representing elements of value such as brand reputation, customer relations, and intellectual property.

Fair Value

An estimate of the price at which an asset or liability could be exchanged between knowledgeable, willing parties in an arm's length transaction.