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wariber [46]
3 years ago
7

Absco Enterprises meticulously follows all laws and regulations and attempts to satisfy ethical​ requirements, but it does not g

o out of its way to address social or environmental issues unless it is persuaded to do so. This would suggest that the company has adopted​ a(n) _______ stance to social responsibility.
Business
2 answers:
Ira Lisetskai [31]3 years ago
8 0

Company has taken the Accommodative Stance.

This is a social responsibility in which a company may not be proactive in addressing social or environmental issues unless it is asked to do so. But it doesn't mean that the company is irresponsible towards such issues. Such companies follow laws, rules and regulations and fulfill the ethical responsibilities as well.

So because Absco Enterprises follow all the laws and fulfill the ethical requirements, but doesn't address the social and environmental issues unless persuaded, they are adopting the Accommodative Stance.

kirza4 [7]3 years ago
6 0
<span>Absco Enterprises has adopted an accommodative stance to social responsibility. An accommodative stance is one where an organization fulfills legal and ethical responsibilities, and it will act further in cases where it can be persuaded to. This is more involved than a defensive stance, in which an organization does the legal minimums and nothing more, and less than an organization that takes a proactive stance, when it behaves like a living and breathing contributing member of society.</span>
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Answer and Explanation:

The computation of the free cash flow of the investment for the year 2020 and 2021 is shown below:

Particulars                       Case 1                     Case 2

                              Without Investment      With Investment

Add: Earnings Before

Interest and

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less: Change in

(Current Assets

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Less: Capital Expenditure $0                  ($5,000,000)

Free Cash Flows               $1,600,000 ($2,150,000)

Working notes:

1.

Particulars                          Without Investment With Investment

Revenue for the Year 2021     $6,000,000          $9,000,000

Less: Cost of Goods Sold     $4,000,000           $5,500,000

(-) Depreciation                      $0                                 $1,000,000

Earnings Before

Interest and Tax                         $2,000,000                $2,500,000

Tax Savings on Depreciation

(Depreciation × 20%)                  $0                               $200,000

2.

Current Assets               Without Investment          With Investment

Inventories                        $300,000                         $500,000

Accounts Receivable       $200,000                          $300,000

Total                                  $500,000                          $800,000

(Less: Current Liabilities)  

Accounts Payable               $100,000                       $150,000

Less: Change in

(Current Assets

- Current Liabilities)            $400,000                       $650,000

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