When Different Units That Perform the Same Types of Activities

question 85

Multiple Choice

When different units that perform the same types of activities within the same organization are compared to the unit with the best performance, this practice is called

• A)variance benchmarking.
• B)competitive benchmarking.
• C)external benchmarking.
• D)internal benchmarking.

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Definitions:

Primary Market Transaction

Deals with the issuance of new securities directly from the issuer to investors.

Secondary Market Transaction

The buying and selling of previously issued securities, such as stocks and bonds, between investors, rather than directly from issuing companies.

Bond Issue

The process of issuing new bonds by a corporation or government to raise capital, involving the creation of new debt securities to be sold to investors.

Subordinated Debt

A type of borrowing that is ranked below other debts in terms of claims on assets or earnings.