Issue Urgency

question 39

Multiple Choice

Issue urgency:

• A) indicates the extent to which the stakeholder's concerns need immediate attention.
• B) refers to the managers' ability to maximize profits.
• C) refers to the shareholders' ability to maximize profits.
• D) refer to the capacity of the stakeholder to positively or negatively affect the stakes of the organization.
• E) indicates the validity and legitimacy of a stakeholder's interest in the organization.

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Definitions:

Direct Method

A cash flow statement approach that lists major classes of gross cash receipts and payments.

Revenues and Gains

Income generated from normal business operations and other positive financial events.

Cash Flows

The complete sum of funds flowing into and leaving a business, significantly impacting its liquidity.

Net Income

is the total earnings of a company after all expenses and taxes have been subtracted from total revenue; a key indicator of financial health.