A Market-Oriented Organization May Choose Not to Deliver the Benefits

question 88

Essay

A market-oriented organization may choose not to deliver the benefits sought by customers because these benefits are not in the best interest of the individual or society.This is termed the societal orientation.What does this concept mean in terms of organizational justification? List three current issues where the societal orientation concept may need to be applied.

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Definitions:

Degree Of Influence

In accounting, it refers to the level of control or impact one entity has over the operating policies of another, potentially through investment or ownership interest.

Strategic Investment

Investments made with a long-term perspective in mind, focusing on achieving broader business objectives rather than immediate financial gain.

Other Comprehensive Income

Other comprehensive income includes revenues, expenses, gains, and losses that are not included in net income and are reported in the equity section of the balance sheet.

Unrealized Gains

Increases in the value of an investment that have not been sold or exchanged for cash, thus not realized as income.