With Respect to Goodwill and Acquired Intangibles,which of the Following

question 15

Multiple Choice

With respect to goodwill and acquired intangibles,which of the following is most accurate concerning their treatment in computing ROIC when measuring the competiveness of the underlying business of a company?

• A)Remove goodwill but not acquired intangibles from the computation.
• B)Remove acquired intangibles but not goodwill from the computation.
• C)Do not rRemove neither goodwill nor acquired intangibles from the computation.
• D)Remove both goodwill and acquired intangibles from the computation.

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Definitions:

Marginal Productivity Theory

An economic theory that suggests that the amount of compensation or wage received by a resource (like labor) is determined by its marginal productivity or the additional output generated by using one more unit of the resource.

Income Distribution

Describes how a nation’s total GDP is distributed amongst its population, impacting levels of wealth and poverty.

Resource Pricing

The determination of prices for various factors of production, including labor, capital, and natural resources, based on market dynamics.

Money-Income Determination

The process of how individual and household incomes are determined, influenced by factors such as employment, wages, and economic policies.