What Reason Is Cited by the Authors for the Difficulty

question 7

Multiple Choice

What reason is cited by the authors for the difficulty is receiving approval for sustainability as a strategy?

• A)Sustainability is not a classic strategy in the mold of quality,cost leadership,or flexibility.
• B)Sustainability is too easily achieved and therefore does not provide a competitive advantage in the market.
• C)In general,directors often need to see a demonstrable return on investment to justify the costs.
• D)Sustainability is an inherently high-risk strategy and most boards are risk-averse.

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Definitions:

Additional Debt

New borrowing by an individual or entity, adding to any existing obligations, and impacting financial leverage and risk profile.

Maximum Capacity

The highest level of output that a company can sustain to make a product or provide a service, under normal conditions.

Dividend Payout Ratio

A financial metric indicating the percentage of a company's earnings paid out to shareholders in the form of dividends.

Debt-Equity Ratio

Calculating a corporation's financial leverage involves dividing total liabilities by the equity of shareholders.