According to Scholtes's Understanding of Profound Knowledge, People Don't Understand

question 58

Multiple Choice

According to Scholtes's understanding of profound knowledge, people don't understand systems when:

• A) they see the causes of the problems but not the symptoms.
• B) they see events as individual incidents.
• C) they understand the process of change and the resistance to it.
• D) they can distinguish between fact and opinion.

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Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, ending with the net income or loss for the period.

Holding Gain

The increase in value of an asset held over a period, not realized until the asset is sold.

LIFO

An inventory valuation method, "Last In, First Out," where the most recently produced or acquired items are recorded as sold first.

Current Cost Profits

The earnings achieved by a company based on the replacement costs of the assets used in its operations rather than historical cost accounting.