Which Three of the Following Are Elements of the Value

question 7

Multiple Choice

Which three of the following are elements of the value action pentagon?

• A) Raise investment in positive spread units
• B) Decrease return on existing capital
• C) Extend the planning horizon
• D) Lower the required rate of return

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Definitions:

Conceptual Framework

A theoretical structure that outlines the objectives and fundamentals of financial reporting to guide the development of accounting standards.

Income

Increases in assets, or decreases in liabilities, that result in increases in equity, other than those relating to contributions from holders of equity claims.

Gains

Increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases in liabilities that result in increases in equity, other than those related to contributions from equity participants.

Significant Risks

Major threats or uncertainties that could potentially impact an entity's operations, financial performance, or reputation significantly.