An Important Difference Between Financial Measures of Quality and Nonfinancial

question 6

Multiple Choice

An important difference between financial measures of quality and nonfinancial measures of quality is that ________.

• A) financial measures of quality tend to be useful indicators of future long-term performance, while nonfinancial measures have more of a short-term focus
• B) nonfinancial measures of quality tend to be useful indicators of future long-term performance, while financial measures of quality have more of a short-term focus
• C) nonfinancial measures are generally too subjective to have any long-term value, while financial measures are too objective for taxation purposes
• D) nonfinancial measures are generally too subjective to have any short-term value, while financial measures are too objective to have medium-term value

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Definitions:

Functional Analysis

A behavioral technique that identifies the antecedents and consequences of behavior to understand its purpose or function.

Motivation Behind Behavior

The underlying reasons or forces that drive an individual to act or behave in a certain way, which can be intrinsic or extrinsic in nature.

External Variables

Factors outside the individual that can influence behavior or outcomes, including social, economic, and physical environment conditions.

Predictable Ways

Patterns or behaviors that occur in a manner that can be anticipated based on previous observations or known principles.