A Company Focused on Not Only Offering Goods and Services

question 60

Multiple Choice

A company focused on not only offering goods and services customers value but also ensuring the community and other environmental factors surrounding the company do not suffer from the firm's actions is said to be ________.

• A) educational
• B) sustainable
• C) occupational
• D) self-sufficient
• E) responsive

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Definitions:

Depreciation

The systematic allocation of the cost of an asset over its useful life.

Investment Center

A business unit within a company that is responsible for its own revenues, expenses, and asset investments, with its performance measured by its ability to generate income relative to its assets.

Minimum Required Return

The lowest acceptable return on an investment, based on risk tolerance and financial goals.

Residual Income

The income that exceeds the minimum required return on investment or capital employed; often used as a performance measure.