The Productivity of a Company Is Neither Efficient nor Effective

question 54

Multiple Choice

The productivity of a company is neither efficient nor effective when its:

• A) goals are not achieved and resources are wasted.
• B) goals are achieved and resources are not wasted.
• C) goals are achieved but resources are wasted.
• D) performance effectiveness is high.
• E) goals are not achieved but resources are not wasted.

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Definitions:

Intercompany Profit

Profits that arise from transactions between entities within the same parent company, often requiring elimination for consolidation purposes.

Intercompany Bond Gains

Profits arising from bonds sold or traded between companies within the same corporate group.

Unamortized Bond Discount

The portion of the bond issuance price that is below the face value and has not yet been expensed in the financial statements.

Consolidated Income Statement

An income statement that combines the financial performance of a parent company and its subsidiaries, showing the total revenue, expenses, and net income of the entire group.