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What is the premise of the institutional theory?
Cash
A company's most liquid asset, consisting of currency held and deposits in bank accounts, used for transactions or as reserve for future payments.
Liabilities
Economic responsibilities or liabilities a corporation has towards others, necessitating settlement over time by transferring assets such as cash, products, or services.
Return on Assets
A financial ratio that measures the efficiency of a company's use of its assets in generating profit.
Net Income
The net profit of a company calculated by deducting expenses and taxes from its total income.
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