What Will Be the Result If a Company Which Achieves

question 5

Multiple Choice

What will be the result if a company which achieves a negative performance spread shrinks?

• A) Value opportunity forgone
• B) Value destruction
• C) Value maintenance
• D) Value creation

---

Definitions:

Fixed Asset

A fixed asset is a long-term tangible piece of property or equipment that a company owns and uses in its operations to generate income. Fixed assets are not expected to be converted into cash in the short term.

Physical

Pertaining to objects, materials, or substances that occupy space and have measurable properties, often contrasted with digital or virtual counterparts.

Cost Basis

Cost basis represents the original value or purchase price of an asset for tax purposes, adjusted for factors like depreciation. It is used to calculate capital gains or losses upon disposal of the asset.

Special Acquisition Fees

Costs incurred during the acquisition of a company or significant assets that are not directly related to the purchase price.