Building a Good Reputation

question 2

Multiple Choice

Building a good reputation:

• A) is a form of screening.
• B) is a form of signaling.
• C) is a form of statistical discrimination.
• D) None of these statements is true.

---

Definitions:

Capitalized Cost

The total cost of a purchased asset, including acquisition price and all costs to bring the asset to a functioning state.

Architect Fees

Fees paid for professional services rendered by architects in the planning, design, and oversight of a construction project.

Excavation Fees

Charges related to the process of removing earth to form a cavity in the ground, typically in construction or mining.

Operating Efficiency

A measure of how well a company uses its resources to generate profits, indicating the effectiveness of management strategies.