Reference no: EM133037612
1. The concept of triple bottom line reporting refers to reporting on an entity's:
- employee, supplier and customer relations
- profit before interest and tax, profit before tax, profit after interest and tax
- economic, social and environmental performance
- corporate governance, environmental and social performance
2. Large shareholders own more of the business than small shareholders, therefore they may have a larger influence on management.
3. Stakeholder theory proposes:
- none of the options are correct.
- the purpose of an entity is to work for the good of all stakeholders group
- the sole purpose of an entity is to earn the highest profits for its shareholders
- an entity's sole responsibility is to its shareholders and creditors
4. Which of these is NOT one of the nine principles of business sustainability performance?
- Ethics
- business relationships
- value of products and services
- foreign currency policy
5. Which of the following statement is INCORRECT?
- An agency relationship is developed when the principal (owner) hires another party (agent) to perform some services on her behalf
- shareholders and managers do have an agency relationship
- When there is conflict between shareholders and managers, it is called an agency problem
- Shareholders are the real managers of a business
6. under stewardship theory, how are directors seen?
- as serving their own interest
- as stewards of some greater good
- as creating wealth for themselves
- as protecting shareholder wealth only
7. Which of the following is an explanation as to why entities act in a socially responsible manner?
- All of the options are explanations as to why entities act in a socially responsible manner
- Because it is good for profits
- To 'do the right thing'
- To limit interference from government
8. According to stewardship theory, serving on an entity's board of directors:
- is a personal wealth creation opportunity
- is purely for a directors' self-interest
- is a chance to play a role in the proper workings of the marketplace
- is for the benefit of one stakeholder, the entity
9. which of these is NOT one of the nine principles of business sustainability performance?
- Governance
- Financial return
- Depreciation policy
- Protection of the environment
10. The concept of the triple bottom line states that an entity is responsible for the areas of:
- economic, environmental and ethical performance
- economic, social and ethical performance
- economic, social and environmental performance
- social, environmental and ethical performance