The Real Cost of Some Business Assets Might Not Be

question 3

Multiple Choice

The real cost of some business assets might not be reflected in the calculation of future earnings streams.This issue is best addressed by which of the following?

• A)The capitalization of earnings method is used for the business and all assets as reported in the financial statements.
• B)The capitalization of earnings method is used for the business and all assets as reported in the tax statements.
• C)The earnings multiplier is adjusted to better reflect the risk of the industry.
• D)The assets are examined to determine if there is any appreciation in value for reasons other than their contribution to business operations.

---

Definitions:

Ivic v. Lakovic

A legal case involving parties Ivic and Lakovic; specifics would depend on the jurisdiction and context of the case.

Strikes

Work stoppages initiated by employees as a form of protest against their employers to achieve certain goals, such as higher wages or better working conditions.

Lockouts

Actions taken by employers to prevent employees from working as a strategy in labor disputes, typically during negotiations for better terms or conditions.

Picketing

The act of standing or marching outside a place of work or another location as a form of protest, often by workers during a strike.