Which of the Following Statements About an Organization's Social Responsibilities

question 68

Multiple Choice

Which of the following statements about an organization's social responsibilities is true?

• A) Ethical responsibilities are imposed by local town councils, provincial government, and federal regulatory agencies.
• B) Discretionary responsibilities include responsibilities that are usually codified into law.
• C) Legal responsibilities are guided by a company's desire to make social contributions to the community.
• D) A business has an economic responsibility to stay in business and make a profit.
• E) Economic responsibility is the highest criterion of social responsibility.

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Definitions:

Noncash Investing

Investment activities that do not involve immediate cash transactions, such as acquiring assets through the issuance of stock or the exchange of one asset for another.

Financing Activities

Transactions and events that affect a company's long-term liabilities and equity, including debt issuance and equity transactions.

Statement Of Cash Flows

A financial statement that details the inflows and outflows of cash for a business over a specific period, highlighting operating, investing, and financing activities.

Significant Noncash

Transactions or activities that have a significant impact on an entity's financial statements without involving cash flows.