Which of the Following Is the BEST Example of Outcome

question 70

Multiple Choice

Which of the following is the BEST example of outcome fairness?

• A) The restaurant charged the man for two meals when he sent back his overcooked steak and demanded one cooked correctly
• B) Miriam decided the missing button was not important enough to make another trip to the cleaners and complain
• C) The sign posted on the wall stated the hair salon would not fix the hair of anyone who did not have an appointment
• D) The small movie theater gave all patrons two-free movie tickets for the night of their choice when the movie projector broke halfway through showing the newest Brad Pitt movie
• E) The hotel refused to help a man find a room for the night when he missed his scheduled airplane flight

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Definitions:

Residual Value

The estimated value that an asset will have at the end of its useful life, after depreciation has been accounted for.

EVA

Economic Value Added, a measure of a company's financial performance based on residual wealth calculated by deducting cost of capital from its operating profit.

Company Tax Rate

The percentage of a corporation's profits that is paid to the government as tax.

WACC

Weighted Average Cost of Capital; a calculation that reflects the cost of a company's financing including both debt and equity.