Which of the Following Is an Advantage of Applying the Economic

question 90

Multiple Choice

Which of the following is an advantage of applying the economic value creation perspective to assess a firm's performance?

• A) When the need for "hard numbers" arises, managers and analysts rely on economic value creation perspective to measure competitive advantage.
• B) In economic value perspective, analysts not only consider historical costs, but also opportunity costs.
• C) Arriving at the economic value created is easy because determining the value of a good in the eyes of consumers is a simple task.
• D) It is the most efficient tool for assessing corporate-level competitive advantage of highly diversified companies with large product portfolios.

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Definitions:

Different Kinds

Various types or categories within a particular subject or area, highlighting diversity or a range of options.

Municipal Bond

A debt security issued by a state, municipality, or county to finance its capital expenditures.

Industrial-Development Bond

Tax-exempt bonds issued by municipal or county governments to finance the development of industrial or commercial facilities, intended to create jobs and promote economic growth.

Revenue Bond

A type of municipal bond supported by the revenue from a specific project, such as a toll road or a public utility, rather than general taxes.