Question 1

Intangible assets include all of the following EXCEPT&#10;A)Human capital, customer loyalty&#10;B)Advertising, brands and intellectual property&#10;C)Structural assets, cost of capital&#10;D)Goodwill, competitive advantage

Accepted Answer

Structural assets and cost of capital are tangible assets, while the other options listed are intangible assets.

Question 2

A firm's total impact is often referred to as its:&#10;A)Profit&#10;B)Footprint&#10;C)Governance&#10;D)KPI

Accepted Answer

A firm's total impact is often referred to as its footprint, which takes into account its economic, social, and environmental effects. It includes the direct impacts of a firm's operations as well as the indirect impacts throughout its supply chain and the wider community. Profit (A) is a financial measure of a company's performance, governance (C) refers to the systems and processes by which a company is directed and controlled, and KPI (D) stands for key performance indicators, which are metrics used to measure progress towards specific goals.

Question 3

The GRI aims to:&#10;A)Make sustainability reporting standard practice.&#10;B)Provide guidance and support to organizations.&#10;C)Create a sustainable global economy.&#10;D)All of the above.

Accepted Answer

The GRI (Global Reporting Initiative) aims to make sustainability reporting standard practice, provide guidance and support to organizations, and create a sustainable global economy.

Question 4

Which of the following is not typically included on a Balanced Scorecard:&#10;A)Functional Strategy&#10;B)Critical business processes&#10;C)Learning and growth&#10;D)Customers

Accepted Answer

Functional strategy is typically not included on a Balanced Scorecard, as the focus is on high-level objectives and measures related to the organization as a whole rather than specific functional areas. The other options (B, C, and D) are commonly included on a Balanced Scorecard.

Question 5

The most suitable proxy for measuring strategic effectiveness is:&#10;A)Discounted Cash Flows&#10;B)Operational Effectiveness&#10;C)Profit Maximization&#10;D)Balanced Scorecard

Accepted Answer

The answer of The most suitable proxy for measuring strategic...

Question 6

For public companies, reporting can be done:&#10;A)Internally mandated and externally voluntarily&#10;B)Internally, externally mandated and externally voluntarily&#10;C)Externally and internally mandated&#10;D)Internally only

Accepted Answer

Public companies are required to report both internally and externally due to regulatory mandates, and they may also choose to report externally on a voluntary basis for various reasons, such as corporate social responsibility initiatives.

Question 7

Firms who include non-financial sustainability reports within their annual financial reports use the:&#10;A)Objective data&#10;B)GRI guidelines&#10;C)Real Options&#10;D)One Report

Accepted Answer

One Report is a report that combines both financial and non-financial sustainability information in one report.

Question 8

Taking products from one location and selling them with increased value in another is an example of:&#10;A)Arbitrage&#10;B)Real Options&#10;C)Balanced Scorecard&#10;D)Value added

Accepted Answer

Arbitrage involves buying a product in one market at a lower price and selling it in another market at a higher price to profit from the price difference.

Question 9

Firms can create additional value by:&#10;A)Persuading existing customers to buy more&#10;B)Attracting new customers to existing products&#10;C)Developing new products&#10;D)All of the above

Accepted Answer

All three options can help firms create additional value. Persuading existing customers to buy more can increase the revenue and profits of a company, and attracting new customers to existing products can help expand the customer base and increase market share. Developing new products can create new revenue streams and provide a competitive advantage. Therefore, all of the above options can help a firm create additional value.

Question 10

Which of the following is TRUE:&#10;A)Most firms format sustainability reports in a standardized way.&#10;B)GRI mandates that firms follow standards set by stakeholder council.&#10;C)Voluntary reporting is growing at the highest rate.&#10;D)Internal KPIs must be reported to the public in a timely manner.

Accepted Answer

Voluntary reporting on sustainability is indeed growing at a significant rate as more companies recognize the importance of demonstrating their commitment to sustainable practices to stakeholders, including investors, customers, and the public. This trend is driven by increasing awareness of environmental issues, social responsibility, and the benefits of transparency in building trust and reputation. Unlike mandatory reporting, which is required by law or regulation, voluntary reporting allows firms more flexibility in what and how they report, leading to a rapid increase in its adoption.

Deck 8: Measuring and Reporting Environmental Strategy