Relativity of Norms Is More Pronounced the Greater The

question 20

Multiple Choice

Relativity of norms is more pronounced the greater the:

• A) society one lives in.
• B) heterogeneity of the society.
• C) homogeneity of the society.
• D) diversity of the society.

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Definitions:

SFAS No.123

A Statement of Financial Accounting Standards providing guidance on stock-based compensation, requiring companies to expense the cost of employee services received in exchange for an award of equity instruments.

APB No.25

Accounting Principles Board Opinion No. 25, which outlined the method for accounting for stock issued to employees, focusing primarily on the intrinsic value method.

Intrinsic Value

The inherent or fundamental value of an asset, investment, or company based on underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors.

Diluted Earnings

A metric that shows a company's earnings per share if all convertible securities were converted into common stock, often indicating a worst-case scenario for earnings per share.