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:

Acid-test Ratio

A stringent indicator of a company's ability to quickly convert its short-term assets into cash to cover short-term liabilities, excluding inventory.