Corporations Are Now Increasingly Realizing That They Are Accountable

question 9

Multiple Choice

Corporations are now increasingly realizing that they are accountable

• A) legally to shareholders.
• B) legally to all stakeholders.
• C) strategically to additional stakeholders.
• D) legally to shareholders and all stakeholders.
• E) legally to shareholders and strategically to additional stakeholders.

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Definitions:

EBIT

Earnings Before Interest and Taxes, a measure of a firm's profit that includes all income and expenses except interest and income tax expenses.

Straight-Line Depreciation

A method of allocating the cost of a fixed asset evenly across its useful life.

Net Working Capital

The discrepancy between what a company owns in current assets and owes in current liabilities, showing its financial stability in the short term.

Required Rate

The minimum expected return by investors to make an investment worthwhile, considering the risk involved.