A Social Audit Evaluates the Ethical Guidelines of a Business

question 34

True/False

A social audit evaluates the ethical guidelines of a business and how those goals are linked to the overall goals of the firm.

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Definitions:

Return On Investment

measures the gain or loss generated on an investment relative to the amount of money invested, indicating the efficiency of the investment.

Residual Income

The net income an investment or project generates above the minimum required rate of return.

Required Rate Of Return

The minimum return an investor expects to achieve from an investment, given its risk level.

Responsibility Accounting

An accounting system that collects and reports planned and actual accounting information about the inputs and outputs of responsible parties.