For Control Purposes, Which of the Following Is NOT an Important

question 11

Multiple Choice

For control purposes, which of the following is NOT an important financial aspect of organisational performance?

• A) The ability to earn more in returns than the cost of the debt
• B) The ability to sell shares of the company's stock
• C) The ability to generate cash to pay bills
• D) The ability to earn revenues greater than costs
• E) The ability to use resources efficiently and operate at minimum cost

---

Definitions:

Inelastic

Describing demand that does not change significantly when the price of a good or service changes.

Excess Burden

The cost to society created by market inefficiency, particularly through the misallocation of resources or distortions in the market.

Excess Burden

The cost to society created by market inefficiency, often associated with the distortionary effects of taxes and subsidies.

Tax Revenue

The income that is gained by governments through taxation, used to fund public services and government obligations.