True or false?


Question:
1.Corporate social responsibility refers to the concern businesses have for their employees.

2.A corporation can raise financial capital by selling shares of stock to interested investors.

3.Information contained in a firm's annual report largely represents work done by managerial accountants.

4.The higher the risk of a particular investment, the greater the expected rate of return required by investors.

5.A powerful change in the global environment has been the increase in free trade among nations.

6.one of the nine key guidelines for managing with the entrepreneurial mindset is that "Using fuzzy measures early on is better than usine precise ones too late."

7.Being responsible to your customers may require your firm to provide more information regarding your product than the law demands.

Answer:
1. False
2. True
3. True
4. True
5. True
6. True
7. True
1. True & False. Employees are just one of the elements of CSR.

2. True. Corporations do secondary stock offerings all the time to raise money

3. True & False. The MD&A section and much of the write-up are done by internal (managerial) accountants. The financial statements themselves must be approved by external accountants, CPA's.

4. True. As risk goes up the expected return must go up, if the market is efficient.

5. True. This is pretty obvious in today's world with China.

6. True. Fuzzy measures allow for a greater acceptance of error during uncertain times.

7. True. This is pretty obvious.
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.
1 - False - Social responsibility has to do with society, not employees.
2 - True
3 - True - but depends. Some company's like to hire only CPA's - even though managerial accountants are much better suited for the work.
4 - True
5 - True
6 - I never heard that, but could be. Fuzzy can be dangerous.
7 - Perhaps. Just because there isn't a legal requirement does not mean you don't have the DESIRE to provide more information - especially if you perceive it will yield benefits.
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