When a Company's Management Decisions Align with Social and Economic

question 132

Multiple Choice

When a company's management decisions align with social and economic issues,the company is _____.

• A)using creativity to ensure sustained growth
• B)following its business ethics
• C)working towards social welfare
• D)enacting upon its social responsibility

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Definitions:

Net Sales

The amount of sales generated by a company after deducting returns, allowances, and discounts.

Allowance Method

A method of accounting that estimates and sets aside an amount for potentially uncollectible receivables.

Bad Debts

Receivables from accounts deemed not collectable, which constitute financial losses for the business.

Accounts Receivable Turnover

A financial ratio that measures how many times a company collects its average accounts receivable balance within a specific period.