According to the Text,intellectual Capital Is the Difference Between the Market

question 79

Multiple Choice

According to the text,intellectual capital is the difference between the market value and the book value of a firm.Intellectual capital can be increased by ________________.

• A) increasing retention of below average workers
• B) decreasing labor costs
• C) attracting and retaining knowledgeable workers
• D) increasing the turnover of employees

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenues.

Margin of Safety

The difference between actual or projected sales and the break-even point, indicating the cushion a business has before it incurs a loss.

Variable Expenses

Expenditures that change in direct correlation with production levels or the quantity of sales, including costs like raw materials and direct labor.

Fixed Expenses

Costs that do not change regardless of the level of production or business activity.