A Decrease in Liabilities Will Reduce a Firm's Net Worth

question 253

True/False

A decrease in liabilities will reduce a firm's net worth.

Comprehend the structure and function of a strategy map.

Grasp the integration of CSR activities into corporate strategy.

Familiarize with global standards and organizations promoting sustainability and CSR.

Understand the concept of the triple bottom line and its components.

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Definitions:

Return on Investment

A measure of the profitability of an investment, calculated as the net profit from the investment divided by the initial cost of the investment.

Dividends

Disbursements issued by a company to its shareholders, representing a share of the company's earnings distributed to its stock owners.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data points, widely used in finance to measure the volatility of investment returns.

Variance

In statistics, variance is a measure of how far a set of numbers is spread out from their average value. It's key in assessing variability and risk.