True Cost-Benefit Analysis as a Social Theory

question 10

Multiple Choice

True cost-benefit analysis as a social theory:

• A) only measures monetary gains and losses in making business decisions.
• B) compares direct and indirect costs and benefits of program alternatives for meeting a specific goal.
• C) is another theory that judges persons' actions by what those persons believe is right for themselves.
• D) emphasizes justice and a central moral authority.

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Definitions:

Equity Methods

An accounting technique used for recording investments in associate companies where the investor has significant influence but does not have full control or majority ownership, typically implying ownership of 20% to 50% of the voting stock.

Voting Stock

Shares of a corporation that grant the shareholder the right to vote on corporate matters, such as the election of the board of directors.

Equity Method

An accounting technique used to assess the profits earned by investments in other companies by recognizing income and dividends from the investment.

Trading Securities

Financial instruments that are purchased and held primarily for sale in the near term to generate income on short-term price differences.