The Difference Between Reactive and Proactive Policies of an Organization

question 27

Multiple Choice

The difference between reactive and proactive policies of an organization is that:

• A)unlike reactive policies, proactive policies ignore the actions the organization will most likely take to be recognized as an ethical organization.
• B)reactive policies are driven by events and/or a fear of future events, whereas proactive policies are driven by a clear sense of what is construed as ethical for the organization.
• C)proactive policies help monitor the ethical performance of the organization only externally, whereas reactive policies monitor the organization both internally and externally.
• D)unlike proactive policies, reactive policies are true ethical policies.

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Definitions:

Debt-equity Ratio

A ratio illustrating the division of asset financing between shareholder equity and company debt.

Dividend Payout Ratio

The fraction of net income a firm pays to its shareholders in dividends, typically expressed as a percentage.

Dividend Payout Ratio

A metric that shows what portion of a company's earnings are distributed to shareholders in the form of dividends, typically expressed as a percentage.

External Financing Needed

The amount of funding a company must seek from outside sources to finance its business operations and growth ambitions beyond what it can generate internally.