Which of the Following Is Not a Problem with the Concept

question 23

Multiple Choice

Which of the following is not a problem with the concept of the 'triple bottom line'?

• A) It suggests that the social, environmental and economic aspects of an organisation are not interconnected.
• B) The term is not widely used or understood.
• C) It is not possible to reduce the social, environmental and economic aspects of an organisation to a 'common currency'.
• D) The concept of maximisation is difficult to apply to social and environmental aspects of corporate performance.

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Definitions:

Excess Returns

The return on an investment above the return expected from risk-free investments or the market's benchmark.

Risk-free Asset

An investment that is assumed to have no risk of financial loss, often exemplified by government bonds.

Kurtosis

A statistical measure that describes the shape of a distribution's tails in relation to a normal distribution, indicating the potential for extreme outcomes.

Distribution

In finance, the way returns are spread out over time or the manner in which assets are allocated within an investment portfolio.