Donaldson and Preston Articulate Three Aspects or Values of the Stakeholder

question 40

Multiple Choice

Donaldson and Preston articulate three aspects or values of the stakeholder model of the firm. Which of the below is not one of these three?

• A) descriptive
• B) normative
• C) synthetic
• D) instrumental

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Definitions:

Present Value

The actual value of future money amounts or incoming cash flows, calculated using an established return rate.

Interest Payable

This refers to the amount of interest expense that has accrued but has not yet been paid by the company.

Periodic Bond Interest Payments

The regular interest payments made to bondholders during the life of the bond.

Present Value

The immediate value assigned to a future sum of money or cash movements, based on a particular return rate.