Which of the Following Holds True Regarding Sustainable Businesses

question 19

Multiple Choice

Which of the following holds true regarding sustainable businesses?

• A) A sustainable business operates with nature by exploiting it.
• B) A sustainable business strives for a win-lose outcome where the environment gains and the organization loses.
• C) A sustainable business creates products or services that become so widely used that they result in the exhaustion of the resources.
• D) A sustainable business can result in an environmental uncertainty.
• E) A sustainable business works by meeting the needs of customers while advancing the well-being of the natural environment.

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Definitions:

Additional Paid-in Capital

The amount of money investors have paid to a company above and beyond the par value of the shares they have purchased.

Cumulative Preferred Stock

A type of preferred stock where dividends accumulate if not paid in any given year, ensuring that dividends must be paid out to preferred stockholders before common stockholders receive any.

Declared Dividend

A portion of a company’s earnings that is approved by the board of directors to be distributed to shareholders on each share of the company's stock.

Common Stock Outstanding

The total number of a company's shares of common stock that are currently owned by investors, including both public and private investors.