Question

21. Explain what is meant by Sustainable Business and how it relates to the going concern concept.

Answer 1

the Sustainable business - S sustainable business deals with economy ore enterpres es to meet positive Capitalism It Maintains highly progresine human rights holicies and incorporates every actions en to delision. Many Multinational Corporations applied sustachable 3toategies to reduced the costs and protected the value of business for long bemod of time. There aree few practiced techniques wed by companies wke: Collaboration, process development and quality Supply Chain Management to overcome short-term obligation challenges. Risk Management method is used to hedge resk and uncertainties. Followings are the ways through which it is related with going concern concept : * Going concem concept deals with the business actrrities through out the year and measures the ability of a firm to meet financial obligations in time There is no intention to liquidate the business and follows accounting principles to prepare the reports. Hedgang tools are used to control the activities e of of debt financing so that Market risk ¿'s metegated. Going concem concept focus on strong capital Strueture, so that amount of liquid acco will be more and organisation can be able to connert their inventories into cash. Hence. Sustainable business and going concern concent relates to each othere.