All of the Following Are Accounting Factors That Will Cause

question 49

Multiple Choice

All of the following are accounting factors that will cause a firm's value-to-book ratio to decrease over time except:

• A) recognizing unrealized gains on assets
• B) a loss of competitive advantage through changes in technology or other factors
• C) earning a high ROCE (above the equity cost of capital) on off-balance-sheet R&D assets
• D) earning a high ROCE (above the equity cost of capital) on off-balance-sheet intangible assets (such as brand equity) over time

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Definitions:

Politics

Activities within an organization that involve manipulation, negotiation, and influence to gain power or achieve specific goals.

Political Behaviors

Actions taken within an organization that are aimed at acquiring, developing, and using power and other resources to obtain one's preferred outcomes.

Self-Promotion

Strategies and practices that individuals use to convey their skills, accomplishments, and overall worth to others, often for career advancement.

Reverse Integration

A strategy where a company integrates backwards in the supply chain, taking over some roles of its suppliers or distributors.