Match the ERM Objective with the Appropriate Definition

question 83

Multiple Choice

Match the ERM Objective with the appropriate definition.
-Strategic objectives

• A)These objectives relate to the reliability of the enterprise's reporting, both internal and external.
• B)These objectives relate to the effective and efficient use of the entity's resources.
• C)These objectives relate to goals that support the entity's mission.
• D)These objectives relate to the entity's compliance with all applicable laws and regulations.

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Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed by the government on income or property.

After-Tax Discount Rate

The after-tax discount rate is the rate used to discount future cash flows back to their present value, accounting for taxes, and is crucial in evaluating the after-tax net present value of future cash flows.

Capital Budgeting

The evaluation of investment projects in terms of their potential to increase shareholder value through strategic long-term asset allocation.

Incremental Sales

Incremental sales refer to the additional sales revenue gained from a particular sales activity or decision, beyond what would have been achieved otherwise.