The Purpose of a Social Responsibility Audit Is to Develop

question 181

True/False

The purpose of a social responsibility audit is to develop a corporate code of ethics and make sure everyone in the organization is aware of the code and is following it.

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Definitions:

Contingent Liability

A potential obligation that may be incurred depending on the outcome of a future event or set of circumstances.

Net Income

The net income of a business once all deductions including expenses, taxes, and other costs are taken from the total earnings.

Inventory

The total amount of goods and materials held by a business for the purpose of resale or production.

Net Income

The total profit or loss of a business after all expenses, including taxes and interest, have been deducted from revenue.