In Expressing Corporate Objectives Aimed at Enhancing Shareholder Value,a Firm

question 12

Multiple Choice

In expressing corporate objectives aimed at enhancing shareholder value,a firm combining its debt and market value of its stock and then subtracting the capital invested in the company,is using the _____ approach.

• A)return on capital
• B)economies of scale
• C)market value added
• D)cash conversion cycle

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Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the potential benefits missed out on.

Personal Income Tax

Tax levied on individuals or households based on their income level.

Raising Children

The process and practices involved in promoting and supporting the physical, emotional, social, and intellectual development of a child from infancy to adulthood.

Opportunity Cost

The economic consequence of bypassing the nearest favorable option when making a choice.