Why Should Organizations Be Concerned with Managing External Stakeholder Relationships

question 126

Multiple Choice

Why should organizations be concerned with managing external stakeholder relationships?

• A)external stakeholders engage in direct transactions with the organization
• B)they are sources of outputs (goods and services)
• C)they are sources of inputs (resources)
• D)it may lead to less environmental change

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Definitions:

Absorption Costing

Absorption costing is an accounting method that includes both variable and fixed manufacturing costs in the cost of a product.

Net Operating Income

A financial metric that calculates the profit generated from a company's operations, excluding taxes and interest.

Net Operating Income

The profit generated from a company's everyday business operations, excluding expenses from interest and taxes.

Net Operating Income

A financial metric that calculates a company's profitability by subtracting operating expenses from gross profit.