McDonald's Defines Four Sustainability Initiatives

question 35

Multiple Choice

McDonald's defines four sustainability initiatives. Which of the following is NOT an example of one of its four sustainability initiatives?

• A) Environmental scorecard
• B) Service-encounter design
• C) Supplier audits for animal welfare
• D) Packaging from renewable materials

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Definitions:

Fair Value

An estimated market value of an asset or liability, based on the assumption of a transaction between willing parties in an arm's length transaction.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its net identifiable assets, representing factors such as reputation, brand, and customer relationships.

Entity Method

A consolidation approach where investments are recorded at the purchase cost, adjusted for the parent company's share in the subsidiary's post-acquisition profits or losses.

Gross Margin

A company's revenue minus its cost of goods sold, divided by revenue, expressed as a percentage, indicating the percentage of revenue that exceeds the cost of goods sold.