Which Statement Is Correct

question 87

Multiple Choice

Which statement is correct?

• A)A simple capital structure includes potentially dilutive securities.
• B)A simple capital structure excludes potentially dilutive securities.
• C)EPS applies only to a company with a simple capital structure.
• D)A company with a simple capital structure does not need to calculate EPS.

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Definitions:

Option

A separate contract in which an offeror agrees not to revoke her offer for a stated period of time in exchange for some valuable consideration.

Reasonable Time

A period that is fair and appropriate given the circumstances, often used in contracts to define a period for the performance of an obligation.

Subjective Approach

A perspective or method that relies on personal opinions, interpretations, feelings, or tastes, rather than objective or external facts.

Contract Determination

The process of establishing the terms of a contract, including its obligations, benefits, and conditions, often through negotiation.