Which of the Following Is Typically an Economic Responsibility of a Firm

question 22

Multiple Choice

Which of the following is typically an economic responsibility of a firm?

• A) sourcing raw materials from highly developed countries
• B) paying adequate returns to the firm's stockholders on the capital invested by them
• C) donating resources, in terms of money and time, toward community development
• D) helping a nation increase its import of goods and services

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Definitions:

Owner's Equity

This financial term represents the owner’s interest in the assets of a business, calculated as the difference between the business assets and its liabilities.

Net Margin

A profitability ratio calculated as net income divided by revenue, indicating the percentage of each dollar of revenue that results in net profit.

Inventory Turnover

A measure of how often a company's inventory is sold and replaced over a specific period, indicating the efficiency of inventory management.

Cycle Times

The total time from the beginning to the end of a process, procedure, or activity, often used as a measure of efficiency in manufacturing and project management.