Which of the Following Statements Is True of the Triple

question 26

Multiple Choice

Which of the following statements is true of the triple bottom-line approach?

• A)The only responsible and moral course of behavior is to reap the highest return possible,within the law.
• B)Financial success is necessary,but social and environmental responsibilities are of equal importance,and corporations paying attention to those social and economic duties will contribute to both organizational and societal sustainability.
• C)The goal of business is to ensure the short-term viability of an organization's plans as organizational priorities change with time.
• D)Businesses have only one social responsibility-to use their resources and engage in activities designed to increase their profits,so long as they stay within the rules of the game,which is to say,engage in open and free competition,without deception or fraud.

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Definitions:

Return On Assets

A financial ratio that indicates how profitable a company is relative to its total assets, measuring efficiency in generating profits.

Net Income

The net income of a business following the deduction of all costs, such as operational expenses and taxes, from its overall revenue.

Average Total Assets

An indicator of a company's financial health, calculated by adding the beginning and ending total assets for a period and dividing by two.

Managerial Accounting

The practice of identifying, measuring, analyzing, and interpreting accounting information to help managers make informed business decisions.