In Which of the Following Ways Is the Management of a Company

question 141

Multiple Choice

In which of the following ways is the management of a company accountable to its communities?

• A)making timely interest payments to creditors and dividend payments to investors
• B)ensuring the company's environmental impact is not harmful to its area of operations
• C)providing a capital return on the shareholders' investment
• D)repaying principal and interest to the suppliers

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, including loans, bonds, or lines of credit.

Net Income

The remaining profit of a company after all financial obligations and taxes are taken out of its total income.

Net New Equity

The amount of money raised by a company through the issuance of new shares, minus any shares repurchased.

Equity Repurchases

The process by which a company buys back its own shares from the marketplace, reducing the amount of outstanding stock.