FSA Level 2 120 Questions with Correct Answers

FSA Level 2 120 Questions with Correct Answers What are the 3 main considerations that shape each INDUSTRY's sustainability profile - Correct Answers 1. Societal License to operate; 2. Use of common Capitals; and 3. costs to society or environmental Externalities Lets Climb Everest Societal licenses to operate - Correct Answers the ongoing acceptance of a business endeavor from the local, regional, or national community (in return for an extensive license to operate or for getting certain concessions that other industries don't, firms in specific industries are expected to fulfill certain societal goals or else to have restrictions placed on some aspects for their operations) Industries with extensive license to operate include (4): - Correct Answers 1. Quasi-public services (ex. utilities, mortgage and student loan providers, telephone and cable companies, transportation authorities); 2. Have access to exclusive use of a public good (ex. utilities) 3. Benefit from intellectual property protection 4. Have a fiduciary duty that extends beyond shareholders (ex. finance and professional services) Use of common capitals - Correct Answers include elements as varied as water and employees. These are nonfinancial capitals available to an industry as a source of value creation but not owned or controlled by the companies in that industry. Examples of common capitals include (3 categories): - Correct Answers - Natural capital: such as forests, mineral deposits and water - Public infrastructure: such as roads and wastewater systems