The Duty of a Firm to Maximize Returns for Its

question 183

Multiple Choice

The duty of a firm to maximize returns for its owners or stockholders is referred to as

• A) social responsibility.
• B) value consciousness.
• C) benefit marketing.
• D) profit responsibility.
• E) stakeholder responsibility.

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Definitions:

Deferred Tax Assets

The amount of income tax recoverable in future reporting periods in respect of deductible temporary differences and tax losses.

Retained Earnings

The portion of net income that is retained by a company rather than distributed to its shareholders as dividends, which is reinvested into business operations.

Deferred Tax Assets

Financial assets that reduce future tax liability due to temporary differences between the ledger and tax basis of assets and liabilities, or the carryover of unused tax credits/deductions.

Income Tax Expense

The cost to a company for its taxable income, comprising current tax liabilities and deferred tax movements.