The Relevant Measure of Value of the Assets of a Company

question 107

Multiple Choice

The relevant measure of value of the assets of a company that is going out of business is its:

• A) historical cost
• B) recorded value
• C) book value
• D) Liquidation value

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Definitions:

Internal Equity

A pay strategy ensuring fairness in employees' wages within the same organization, based on job value and employee contribution.

External Equity

A principle in compensation management that ensures an organization's pay rates are competitive with those in the external labor market.

Hay Profile Method

A job evaluation technique that assesses roles based on knowledge, problem solving, accountability, and working conditions to determine pay scales.

Clerical Employees

Workers who perform administrative and office duties, such as answering phones, typing, filing, and record keeping.