The Amount of Return a Strategy or Operating Program Generates

question 50

Multiple Choice

The amount of return a strategy or operating program generates in excess of the cost of capital is commonly referred to as its:

• A)opportunity cost.
• B)gross output.
• C)economic value added.
• D)enterprise value.

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Definitions:

Foreseeable Plaintiff

A person who is readily identifiable as likely to be harmed by the defendant's conduct, thus owed a duty of care in negligence law.

Qualified Opinion

An opinion issued by an auditor saying that, as of a given date, the books of a firm represent its financial health; however, the auditor may qualify the opinion either because the firm is facing some uncertainty that might affect the company in the future or because the firm has deviated from generally accepted accounting principles (GAAP) in some minor way.

Sarbanes-Oxley Act

Legislation that places an affirmative duty on the directors of publicly-traded corporations to monitor whether they are conforming to all legal requirements.

Duty of Care

A legal obligation to adhere to a standard of reasonable care while performing acts that could foreseeably harm others.