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Principles of Accounting Volume 2: Managerial Accounting

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Q1 | Which of the following best defines stakeholders?

investors and lenders

environmental groups

anyone directly or indirectly affected by the organization

groups or individuals financially impacted by the organization

Q2 | Which of the following statements is most often the case?

Socially responsible businesses tend to post higher profits than those not focused on social responsibility.

Companies that are not socially responsible will have better profits, but have a moral obligation to society.

Socially responsible investing gives poorer returns than non-socially responsible investing.

Investors are more short termed focus and so socially responsible investing should not be a factor in their investment portfolio.

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