The Value of a Business Changes Over Time Because

question 68

Multiple Choice

The value of a business changes over time because

• A) changes in general economic conditions, industry conditions, and decisions that are made by the managers all affect the value of the cash flows that a business is expected to generate in the future.
• B) actions by competitors also affect the value of a business.
• C) the investment, operating, and financing decisions made by managers also affect the value of a business.
• D) All of the above

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Definitions:

Social Goals

Objectives that relate to improving societal well-being and addressing the needs of a community or population.

Enhanced Profits

Increased earnings resulting from improved business operations, pricing strategies, cost reduction, or sales growth.

Triple Bottom Line Framework

This framework evaluates a company's performance in terms of social, environmental, and financial outcomes, emphasizing sustainability and corporate responsibility.

Corporate Performance

Corporate performance encompasses the evaluation of a company's financial and non-financial results, productivity, and effectiveness in achieving its strategic objectives and satisfying stakeholder expectations.