Locally and Internationally There Is Increasing Concern Regarding the Environmental

question 28

Multiple Choice

Locally and internationally there is increasing concern regarding the environmental standards of producers of all forms of product. The reason for this is:

• A) major companies are being held responsible for their environmental impact.
• B) national and local governments are becoming increasingly involved in the issue.
• C) there is greater public awareness of issues.
• D) international conferences such as the G20 summit are being targeted by environmentalists.
• E) all of the above.

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Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed; the tax liability as a percentage of annual income.

Terminal Value Assumptions

The assumptions made about the value of a business or project beyond the forecast period when estimating its future cash flows for valuation purposes.

Capital Budgeting

The process through which a company evaluates and selects long-term investments that are consistent with its goal of maximizing shareholder value.

Aggressive Assumption

An optimistic and sometimes risky assumption used in financial forecasting or project planning, often involving higher revenues or lower costs than may actually be realistic.