Which of the Following Would Not Reduce Gaming of Report

question 10

Multiple Choice

Which of the following would not reduce gaming of report cards?

• A)Reporting scores using simple graphics
• B)Using simple composite scores
• C)Making firms pay for report card results
• D)Measure quality at the most aggregate level
• E)Risk adjust report card scores

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Definitions:

Net Present Value

It's the calculation of the present value of all cash entering minus the present value of all cash exiting over a certain period.

Sales Quantity

The total number of units sold within a specific period.

Discounted Payback Period

The period of time it takes for an investment's cash flows, discounted back to the present value, to cover its initial cost.

Degree of Operating Leverage

A financial metric that measures how a change in sales volume will affect a company's operating income due to fixed and variable costs.