The Normative Approach ______________________

question 43

Multiple Choice

The normative approach ______________________.

• A)focuses on the actual behavior of the firm and usually addresses how decisions and strategies are made for stakeholder relationships
• B)describes what happens if firms behave in a particular way
• C)is the degree to which a firm understands and addresses stakeholder demands
• D)describes reciprocal relationships between the firm and a host of stakeholders
• E)identifies guidelines that dictate how firms should treat stakeholders

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Definitions:

Net Cash Inflows

The total amount of cash that a company receives during a specific period, minus the cash expenditures.

Payback Period

The time it takes for an investment to generate an amount of income or cash flow to recoup the initial capital cost.

Net Present Value

Net present value (NPV) is a financial metric used to evaluate the profitability of an investment, calculated by subtracting the initial investment from the sum of all future cash flows discounted back to their present value.

Future Net

Refers to projected future networks or internet technologies that aim to surpass the current capabilities and standards.