The Normal Rate of Return Is the

question 166

Multiple Choice

The normal rate of return is the

• A) average rate of return earned in an industry at a given point in time.
• B) opportunity cost of capital.
• C) return on capital associated with zero accounting profits.
• D) the amount paid to an investor when the firm is an on-going concern.

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Definitions:

Outcome

refers to the final product or result attained from a process, action, or event which can be used to measure the effectiveness or success of the operation.

Stimulus

A stimulus is an event or object that elicits a sensory or behavioral response in an organism or system.

Goal Theory

A framework suggesting that specific and challenging goals along with appropriate feedback contribute to higher and better task performance.

Difficult Goals

Targets or objectives that are challenging to achieve and require significant effort, planning, and resources.