A Firm That Makes Use of a _____ Recognizes Other

question 42

Multiple Choice

A firm that makes use of a _____ recognizes other stakeholders beyond investors,employees,and suppliers,and explicitly acknowledges the two-way dialog that exists between a firm's internal and external environments.

• A)stakeholder model of corporate governance
• B)stakeholder bias
• C)code of ethics
• D)stakeholder interaction model
• E)corporate interface model

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Definitions:

Risk Premium

The extra amount of return demanded by investors for taking on a higher level of risk.

Volatility

A statistical measure of the dispersion of returns for a given security or market index, often used to gauge the risk involved in investing in that security or market.

Average Rate

is the mean interest rate in a range of rates, or the mean return of a portfolio of assets calculated over a specific period of time.

Semi-strong Form Efficiency

A concept in finance that suggests all public information is already accounted for in stock prices, thus making it impossible to consistently achieve higher returns through analysis of publicly available information.