Which One of the Following Statements Best Reflects the Textbook

question 61

Multiple Choice

Which one of the following statements best reflects the textbook author's position with regard to assessment and student risk taking?

• A)Classroom assessment practices should make allowances for the fact that students learn more when they occasionally take risks related to academic subject matter.
• B)Authentic assessment gives students greater latitude for risk taking than does traditional assessment.
• C)Although students should certainly be encouraged to take risks during practice activities, they should be discouraged from doing so during formal assessment.
• D)Students should be given credit for responses that, although clearly incorrect, reflect a willingness to occasionally go out on a limb.

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Definitions:

Bankruptcy Costs

Expenses and fees associated with the process of declaring bankruptcy, including legal, administrative, and any potential asset liquidation costs.

Business Risk

The risk inherent in the operations of the firm, prior to the financing decision. Thus, business risk is the uncertainty inherent in a total risk sense, future operating income, or earnings before interest and taxes. Business risk is caused by many factors. Two of the most important are sales variability and operating leverage.

Standard Deviation

A statistical measure of the dispersion or variability of a set of data points, often used in finance to gauge investment risk.

Expected Earnings

The forecasted income of a company, often estimated by analysts based on historical data and future projections, indicating potential future profitability.