In Deciding Questions of Corporate Social Responsibility,Valley Disposal & Recycling,Inc

question 30

Multiple Choice

In deciding questions of corporate social responsibility,Valley Disposal & Recycling,Inc. ,is concerned with

• A)how the corporation can best fulfill any ethical duty to society.
• B)the effect on corporate profits of ignoring any ethical duty to society.
• C)whether the corporation owes any ethical duty to society.
• D)all of the choices.

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Definitions:

Capital Lease

A lease agreement that qualifies as a purchase of an asset for accounting purposes, because it substantially transfers all the benefits and risks of ownership to the lessee.

Incremental Borrowing Rate

The interest rate a lessee would have to pay to borrow, over a similar term and with a similar security, the funds needed to obtain an asset lease.

Leased Equipment

Assets obtained by a company through a leasing agreement, allowing the company to use the equipment without owning it.

Annuity Due

An annuity due is a type of annuity payment in which each installment is paid at the beginning of each period, rather than at the end, typically used in leases and loan repayments.