Which of the Following Situations Would Require a Yardstick Report

question 6

Multiple Choice

Which of the following situations would require a yardstick report?

• A)Christine reviews the company's financial records to verify the amount each expense has changed during the quarter.
• B)Donald gathers information on three mid-range American-made automobiles to compare price,fuel economy,maintenance,insurance rates,and resale value before selecting a car for the company's sales force.
• C)Vivian presents data supporting the decision to open the company's newest restaurant in Baton Rouge.
• D)Elijah conducts a study to determine whether customers prefer to dine in a restaurant or have food delivered to their homes.

---

Definitions:

Market Premium

The additional return an investor expects to receive from a market portfolio compared to the risk-free rate.

Equity Investments

Financial investments in shares of companies, giving the holder ownership interest in the company.

Required Rate

The minimum annual percentage return that an investor expects to earn when investing in a particular security or project, factoring in risk.

Risk-Free Rate

The theoretical rate of return of an investment with no risk of financial loss.