The Present Value Concept Is Widely Applied in Business Because

question 13

Multiple Choice

The present value concept is widely applied in business because:

• A) inflation erodes the purchasing power of money.
• B) money has value over time.
• C) accounting for operating leases requires its use.
• D)most obligations are settled within a year.

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Definitions:

Economic

Pertaining to the production, distribution, and consumption of goods and services, or the wealth and resources of a country or region.

Discretionary

Pertaining to the freedom or authority granted to make decisions or judgments without being strictly bound by set rules or protocols.

Corporate Social Responsibility

A business model that helps a company to be socially accountable—to itself, its stakeholders, and the public—by practicing ethical and sustainable business practices.

Sustainable Development

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs, typically focusing on balancing environmental, economic, and social welfare considerations.