In Business, Only Two Things Can Be Observed, Measured, and Monitored

question 38

Multiple Choice

 In business, only two things can be observed, measured, and monitored:

• A) suppliers and customers.
• B) behavior and outputs.
• C) resources and growth.
• D) employee satisfaction and loyalty.

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Definitions:

Acquisition Differential

The disparity between what was paid to acquire a company and the fair market value of its recognizable net assets.

Equity Method

An accounting technique used by a company to record its investment in another company when it has significant influence over that company but does not have full control.

Bonds Payable

Long-term liabilities representing borrowed funds which the company is obligated to repay to bondholders at a specified future date.

Bond Discount

The difference between the face value of a bond and the price for which it is sold, when the bond is issued at less than its face value.