For Financial Managers to Be Socially Responsible, It Is Necessary

question 6

Multiple Choice

For financial managers to be socially responsible, it is necessary that they:

• A)focus solely on the short-term performance of the firm.
• B)make a long-term commitment to the needs of stakeholders.
• C)focus on maximum utilization of human resources.
• D)allot 10 percent of company profit to employee welfare.

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Definitions:

Effective-Interest Method

The effective-interest method is a financial accounting technique used to allocate loan or investment interest payments and premium/discount adjustments over the relevant period, providing a more accurate representation of financial performance.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is used globally to ensure consistency and transparency in financial reporting.

ASPE

Accounting Standards for Private Enterprises; a set of accounting principles tailored for private companies in Canada.

Bank Loan Payable

A liability representing the amount of borrowed funds from a bank that the borrower is legally required to repay in the future.