All of the Following Are Principles for Social Business Except

question 35

Multiple Choice

All of the following are principles for social business except

• A) Investors of the organization will only receive a 5% return on their full investment amount
• B) The business objective of the organization is to address a social problem and not to maximize profitability
• C) When the investment amount is paid in full to all the investors, the subsequent profits will be invested back into the firm for expansion and improvement opportunities
• D) The employees of the organization will receive market wages with superior working conditions

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Definitions:

Identifiable Cash Flows

Cash flows that can be directly linked to a specific project, investment, or business segment.

Income From Sustainable Operations

Earnings generated from a company’s core business activities that are expected to continue into the future.

Income Statement

A financial statement that shows a company's revenues, expenses, and profit over a specific time period.

Period Costs

Expenses that are not directly tied to the production of goods or services and are instead incurred over a specific time period, such as administrative and selling expenses.