The Disposal of a Significant Component of a Business Is

question 151

Multiple Choice

The disposal of a significant component of a business is called

• A)a change in accounting principle.
• B)an extraordinary item.
• C)an other expense.
• D)discontinued operations.

Recognize the characteristics of different conflict management styles, including their levels of assertiveness and cooperativeness.

Understand the principles of merit pay and how it differentiates between employee performance levels.

Recognize the advantages and disadvantages of skill-based and gain-sharing compensation plans.

Distinguish between intrinsic and extrinsic rewards and their impact on employee motivation.

---

Definitions:

Arbitrage Opportunity

A situation where a trader can make a profit from the price difference of an asset in different markets or forms without taking significant risk.

Risk-free Rate

The theoretical return of an investment with zero risk, often represented by the yield on government bonds.

Beta

A measure of a stock's volatility in relation to the overall market; a beta above 1 indicates greater volatility than the market, while a beta below 1 suggests less.

Average Returns

The arithmetic mean of the historical returns of an investment, often used as a general indication of its past performance.