Which of the Following Statements Best Represents When an Organization

question 53

Multiple Choice

Which of the following statements best represents when an organization can begin to focus on its discretionary or philanthropic responsibilities?

• A) An organization should pursue discretionary responsibility even when it is not meeting its economic requirements.
• B) An organization should pursue discretionary responsibility after it meets its economic, legal, and ethical responsibilities.
• C) An organization should pursue discretionary responsibility as long as it is meeting its economic requirements.
• D) An organization should pursue discretionary responsibility above legal responsibility.

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Definitions:

Budgets Developed

Refer to the process of creating financial plans for an organization or individual's future operations, typically involving setting goals, estimating revenues, and allocating resources.

Short-term Note

A debt obligation that is due to be repaid within a short timeframe, typically less than a year.

Cash Budget

A cash budget is an estimation of the cash inflows and outflows for a business over a specific period of time, used for managing liquidity and ensuring that the company can meet its financial obligations.

Budgeted Income Statement

A financial statement that projects a company's anticipated revenue, expenses, and profits for a specific period, based on budgeted operations.