Which of the Following Is Implied by the 'Shareholder Primacy

question 29

Multiple Choice

Which of the following is implied by the 'shareholder primacy' view of corporate reporting?

• A) Regulators should mandate greater social and environmental reporting.
• B) Reporting should primarily meet the needs of those with a financial stake in the organisation.
• C) Organisations will voluntarily adopt greater social and environmental reporting.
• D) All of the given options are correct.

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Definitions:

Reports

Written documents that summarize financial data and business activities, used to communicate information to stakeholders.

Internal Reports

Financial and operational reports that are prepared for exclusive use within the company, not for external stakeholders.

Communicated

The process of conveying information, ideas, or feelings from one entity to another, using various mediums and channels.

Managerial Accounting

The field of accounting that focuses on providing information to managers for use in planning, controlling, and making decisions.