Although We Have Some Intuitive Sense of Which Firms Are

question 31

Multiple Choice

Although we have some intuitive sense of which firms are good and which are bad, we are presently unable to compare one firm to another reliably across all aspects of operations, because ______.

• A)there is universal acceptance among firms to the idea of greater transparency
• B)there is inherent difficulty of defining societal expectations
• C)there are legal prohibitions to rating companies as good or bad in terms of CSR
• D)there is inherent difficulty in finding firms willing to rate companies as good or bad

---

Definitions:

Merchandising Company

A business that purchases finished products and sells those products to consumers.

Accounts Payable

Liabilities representing the amount a company owes to creditors for purchases made on credit.

Cash Inflow

Money entering a business, typically from operations, investments, or financing activities.

Cash Outflow

Refers to the payment of money in the form of cash or cash equivalents by a business for various purposes, including operating expenses, investment activities, and financing activities.