How Is the Management of a Company Accountable to Its

question 18

Multiple Choice

How is the management of a company accountable to its employees?

• A) The management must provide products that are safe and free of defects.
• B) The management must provide a safe workplace.
• C) The management must ensure that it earns a net positive return on its investments.
• D) The management must ensure the business is environmentally responsible to its community.

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Definitions:

Profit and Loss Ratio

A financial metric that compares the profits and losses of a business, often used to assess operational efficiency and financial health.

Capital Accounts

Financial records that track the equity and investment contributions of owners or shareholders in a company.

Noncash Assets

Assets that are not in the form of cash or cash equivalents, including property, equipment, and intellectual property.

Net Income and Losses

The difference between total revenues and total expenses, indicating the financial performance of a company over a specific period.