The Purpose of a Social Responsibility Audit Is To

question 14

Multiple Choice

The purpose of a social responsibility audit is to:

• A) develop positive-image building activities
• B) develop contingency plans in case of negative events or negative publicity
• C) make sure the organization has clear-cut ethical guidelines for employees to follow and that the company acts to serve the interests of all publics
• D) uncover any unethical behavior and to develop rules and policies for enhancing social responsibility

Understand the concept and legal framework of "distribution" as defined by the Revised Act.

Identify the principal sources for corporate financing.

Comprehend the major legal issues related to the payment for shares.

Analyze the importance and application of preemptive rights in different types of corporations.

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Definitions:

Current Period

Refers to the specific time frame, such as a month, quarter, or year, currently under consideration or analysis.

Goodwill

An intangible asset that arises when a company acquires another company for a price higher than the fair market value of its net identifiable assets.

Accelerated Depreciation

A method of depreciation that allocates larger depreciation charges to the earlier years of an asset’s life and smaller charges to later years.

Depletion

An accounting method used to allocate the cost of extracting natural resources over their productive life.