Because of the Belief That Accounting-Based Numbers Such as ROI,ROE,and

question 28

Multiple Choice

Because of the belief that accounting-based numbers such as ROI,ROE,and EPS are not reliable indicators of a corporation's economic value,which method of corporate performance is now preferred?

• A) shareholder value
• B) basic earning power
• C) price/earnings ratio
• D) profit margin on sales
• E) return on assets

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Definitions:

Adolescents

People undergoing the phase of both physical and mental growth that typically happens from puberty until reaching the age of legal maturity.

Observational Learning

The process of acquiring new behaviors or knowledge by watching and imitating others, also known as social learning.

Albert Bandura

A Canadian-American psychologist known for his work on social learning theory and the concept of self-efficacy.

Reinforcement

A principle in behaviorism that strengthens a behavior by providing a consequence an individual finds rewarding.