Which of the Following Statements Regarding Social Enterprises Is TRUE

question 9

Multiple Choice

Which of the following statements regarding social enterprises is TRUE?

• A)Social enterprises are essentially nonprofit organizations.
• B)To become a socially conscious organization,one-half of the shareholders must approve.
• C)The focus of social enterprises is the motto "reduce,reuse,recycle."
• D)Unlike charities,social enterprises can sell stock to investors.

---

Definitions:

Earnings Quality

Pertains to the degree to which reported income provides a true representation of the company's financial performance.

Source of Cash Flow

Source of Cash Flow refers to the origins of the money coming into a business, indicating how the company is earning its income.

Net Operating Loss

A financial situation where a company's allowable tax deductions are greater than its taxable income, leading to a negative taxable income.

Carryback

Carryback involves applying tax deductions or credits to a prior tax year, resulting in a tax refund or reduced tax liability.