The Process of Applying Social and Environmental Criteria to an Investment

question 47

Multiple Choice

The process of applying social and environmental criteria to an investment decision is known as ________.

• A) green management
• B) value-based management
• C) community investing
• D) social screening

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Definitions:

Planned Economies

Economic systems where decisions regarding production, investment, and distribution are based on a comprehensive plan of action by a central authority.

Central Authority

A governing body or organization that holds the primary power and control over a specified collective or region, often tasked with decision-making and regulation duties.

Production Frontier

Also known as the production possibility frontier, it illustrates the maximum possible output combinations of two goods or services a business can achieve with its current resources and technology.

Market System

A system where economic decisions and the pricing of goods and services are guided purely by the interactions of a country's individual citizens and businesses.