Which of the Following Best Explains Why Market Prices Are

question 16

Multiple Choice

Which of the following best explains why market prices are useful to a financial manager when performing a cost-benefit analysis?

• A) They can be used to determine how much an asset can be sold for.
• B) They can be used to convert different services and commodities into equivalent cash values which can be compared.
• C) They allow all commodities and services to be assigned a fixed and unchanging value.
• D) They can be evaluated to determine whether the market in which the manager exchanges goods and services offers true value.

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Definitions:

Broad and Global Issues

encompasses widely encompassing, international concerns that affect multiple countries and populations.

Avoid Details

The approach of focusing on broader objectives or strategies without being bogged down by intricate specifics.

Strategic Opportunism

The ability of an organization to remain focused on long-term objectives while also being flexible enough to take advantage of short-term opportunities.

Long-Term Objectives

Strategic goals set to be achieved over an extended period, typically over several years, focusing on sustainable growth and development.