Which Statement About the Effect of the Global Reporting Initiative

question 40

Multiple Choice

Which statement about the effect of the Global Reporting Initiative (GRI) and strategic decision-making is not true?

• A)The GRI broadens management perspectives.
• B)Management must consider questions such as how the perception of the company can be improved or damaged in the longer term.
• C)Strategic decision-making is less difficult than short-term decision-making as more options become available when looking to the longer-term.
• D)SWOT analysis is an approach that can be applied to strategic decision-making.

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Definitions:

Estimated Bad Debts

An account on the financial statements estimating the amount of receivables that a company does not expect to collect.

Percentage of Sales Method

An accounting technique used to estimate bad debts or the allowance for doubtful accounts based on a predetermined percentage of sales.

Current Revenues

Income generated from the normal business operations within the current accounting period.

Anticipated Current Expenses

Projected expenses that a company expects to incur within the current accounting period.