The Simple Circular Flow Model Shows That

question 14

Multiple Choice

The simple circular flow model shows that:

• A)firms are the suppliers of resources and the buyers of products.
• B)households are the suppliers of products and the buyers of resources.
• C)households are the buyers of products and the suppliers of resources.
• D)firms are the suppliers of both resources and products.
• E)firms demand both resources and products.

Recognize the significance of involving suppliers and other external entities in internal improvement efforts.

Appreciate the role of information and communication technologies in overcoming business pressures.

Understand the components and calculations of return on investment (ROI) for operating assets.

Identify the role and structure of a balanced scorecard in performance measurement.

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Definitions:

Auditing Process

A systematic examination and evaluation of an organization's financial statements, processes, or systems to ensure accuracy, compliance, and integrity.

Triple Bottom Line

An accounting framework that goes beyond the traditional measures of profit, return on investment, and shareholder value to include environmental and social dimensions.

Global Reporting Initiative

An international independent organization that helps businesses and governments worldwide understand and communicate their impact on issues such as climate change, human rights, and corruption.

Economic Indicators

Statistics and data points used to gauge the overall health of the economy, including measures like GDP, unemployment rates, and inflation.