Why Is an Adjustment Made to Net Income When Calculating

question 98

Multiple Choice

Why is an adjustment made to net income when calculating NOPAT?

• A)It is an amount on which income taxes are not considered.
• B)This adjustment amount has no cost of capital associated with it.
• C)Only assets that incur no interest costs are included with NOPAT.
• D)Divisional managers have no ability to control costs such as these.

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Definitions:

Diverse Populations

Refers to groups of people with varied backgrounds, including but not limited to race, ethnicity, gender, sexual orientation, age, and socioeconomic status.

Racial Identity Development

The series of predictable stages that people of color go through as they struggle to make sense of their relationship to their own cultural group as well as to the oppression of mainstream culture. A parallel process has been suggested for Whites.

Dominant Group

A group within a society that holds the most power, often setting standards and norms for others to follow.

Ethnic Group

Any distinguishable group of people whose members share a common culture and see themselves as separate and different from the majority culture.