Which Term BEST Describes the Ratio of Benefits of Testing

question 105

Multiple Choice

Which term BEST describes the ratio of benefits of testing compared to the costs of testing?

• A) incremental liquidity
• B) assessment investment
• C) practical significance
• D) return on investment

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Definitions:

Undisclosed Principal

A situation in a business transaction where the identity of the principal (the person for whom the agent acts) is not revealed to the third party involved in the deal.

Actual Authority

The explicit power granted to an agent by a principal, allowing the agent to act on the principal's behalf.

Scope

The extent or range of view, work, or activity; the breadth of a project or operation.

Promoter

In a business context, a promoter is an individual or entity involved in organizing and starting a company, raising capital, and taking the necessary steps to establish it.