True or False: Near-term impacts usually have a direct, immediate effect on a company.

The statement is true because near-term impacts are characterized by their immediacy and direct relation to a company’s operations, cash flows, and overall performance. These impacts can manifest in various forms such as regulatory changes, shifts in consumer demand, or immediate operational challenges that affect financial results in the short run. For businesses, responding effectively to near-term impacts is crucial because these factors can influence decision-making and strategic adjustments quickly.

Understanding near-term effects is particularly important in sustainability accounting, as companies need to account for how environmental and social factors can lead to immediate financial consequences, unlike long-term impacts which may take time to materialize and be reflected in a company's financials. In sectors where compliance with regulations or consumer preferences can change rapidly, near-term impacts can be critical for maintaining competitiveness and compliance.