Sitting in Class One Day, Ben Wonders Aloud to His

question 179

Multiple Choice

Sitting in class one day, Ben wonders aloud to his friend James, why the multiple-choice exams seem harder than essay exams. James, whose older sister is a college professor, tells him that research shows that it is easier to trick students with multiple-choice questions so they are in fact harder. "Wow!" Ben thinks, "So that explains it." Ben would have been better off seeking another opinion, or at least asking James about the research he is talking about. If he had, Ben would be demonstrating a healthy scientific attitude of

• A)liberalism
• B)skepticism
• C)open-mindedness
• D)creativity

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Definitions:

Financial Performance

An indicator of how well an entity can use assets from its primary mode of business and generate revenues.

Residual Income

A measure of performance that calculates the income an investment generates above the minimum required return.

Net Operating Income

A measure of a company's profitability, calculated by subtracting operating expenses from operating income.

Average Operating Assets

The average value of the assets used in the normal operations of a business over a specific period, typically used in return on investment calculations.