Question

QUESTION 1

1. Stakeholder theory proposes:

   		none of the options are correct
   		the purpose of an entity is to work for the good of all stakeholder groups
   		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

1 points   

QUESTION 2

1. Owners of a business are part of a wider collective with an interest in the business known as:

   		Stakeholders
   		Shareholders
   		Managers
   		Suppliers

1 points   

QUESTION 3

1. Which of these is not one of the four key drivers of sustainability?

   		Connectivity and communication
   		foreign policy
   		competition for resources
   		economic globalisation

1 points   

QUESTION 4

1. The 3 dimensions of triple bottom line reporting of economic, social and environment are also known as:

   		people, plants, property
   		capital, return, struture
   		bearable, viable, equitable
   		people, planet, profit

1 points   

QUESTION 5

1. The board of directors performs an important role in minimising agency conflicts.

   True

   False

1 points   

QUESTION 6

1. The concept of abundance includes both:

   		literal and free abundance
   		functional and lateral abundance
   		literal and functional abundance
   		free and lateral abundance

1 points   

QUESTION 7

1. Which of these is NOT one of the nine principles of business sustainability performance?

   		Governance
   		Financial return
   		Depreciation policy
   		Protection of the environment

1 points   

QUESTION 8

1. Which of these issues would NOT be regarded as an environmental concern?

   		Wastewater treatment
   		Greenhouse gas emissions
   		Carbon footprint
   		Gender equity

1 points   

QUESTION 9

1. An example of an 'agency relationship' is...

   		The relationship between the owner of a company and the manager they've hired to run the company.
   		The relationship between two real estate agents.
   		The relationship between shareholders and the owners of the firm.
   		The relationship between your parents.

1 points   

QUESTION 10

1. What is included in a triple bottom line report?

   		social, environmental and economic performance
   		ethical, social and environmental performance
   		environmental, economic and ethical performance
   		economic, social and ethical performance plus ans all of the q because last time most of the q is incorrect

Answer 1

Solution for Question 1:

Option 2 is correct i.e. the purpose of an entity is to work for all the good of all stakeholders

Justification : According to Stakeholder theory, the entity should create value or work for all stakeholders to the entitty

Other options 1,3 and 4 are incorrect due to the below reasons:

Option 3 says "the sole purpose of an entity is to earn the highest profit for its Share holders"

Reason : According to Stakeholder theory, the entity should create value for all stakeholders and not only Shareholders

Option 4 says " entity's sole responsibility is to shareholders and creditors"

Reason : According to Stakeholder theory, the entity should create value for all stakeholders namely Customers, Suppliers, Employees, Investors, Communities and others who have a stake in the entity and not only Shareholders and creditors.

Option 1 says "none of the below options are correct" - This is incorrect because the option 2 is correct