Corporate Director or Officer Decisions to Dedicate Corporate Funds for Social

question 11

Multiple Choice

Corporate director or officer decisions to dedicate corporate funds for social causes is called:

• A)Corporate Social Responsibility (CSR)
• B)Social Activism (SA)
• C)Business Engagement in Environmental Situations (BEES)
• D)Strategic Investment in Stakeholder Issues (SISI)

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Definitions:

Payback Period

The duration required for an investment to recover its initial outlay, calculated by dividing the initial investment by the annual cash inflows.

Time Value of Money

The concept that money available now is worth more than the same amount in the future due to its earning capacity.

Discounted Payback Method

A capital budgeting approach that calculates the time required to recoup the cost of an investment, considering the time value of money.

Internal Rate of Return (IRR)

The interest rate that results in a net present value of zero for all cash flows associated with a specific project.