Focus Groups Are Most Useful

question 45

Multiple Choice

Focus groups are most useful

• A) when precise generalization to a larger population is essential and the focus groups' participants and the larger population are relatively heterogeneous
• B) when precise generalization to a larger population is essential and the focus groups' participants and the larger population are relatively homogeneous
• C) when precise generalization to a larger population is not necessary and the focus groups' participants and the larger population are relatively homogeneous
• D) when precise generalization to a larger population is not necessary and the focus group participants and the larger population are relatively heterogeneous

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Definitions:

Shareholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing the ownership interest of shareholders.

SFAS No.123

A Statement of Financial Accounting Standards providing guidance on stock-based compensation, requiring companies to expense the cost of employee services received in exchange for an award of equity instruments.

APB No.25

Accounting Principles Board Opinion No. 25, which outlined the method for accounting for stock issued to employees, focusing primarily on the intrinsic value method.

Intrinsic Value

The inherent or fundamental value of an asset, investment, or company based on underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors.