Which of the Following Statements About Benchmarks Is TRUE

question 186

Multiple Choice

Which of the following statements about benchmarks is TRUE?

• A)They may be financial or nonfinancial.
• B)They are used to compute variances.
• C)Broad benchmarks have more relevance.
• D)Obtaining benchmarks has no legal or ethical issues.
• E)Benchmarks are the main driver of strategic planning.

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Definitions:

Life Insurance

This is a contract between an insurer and a policyholder in which the insurer guarantees payment of a death benefit to named beneficiaries when the insured dies.

Corporate Bond Portfolio

A diversified collection of corporate bonds held by an investor or institution aimed at achieving specified financial goals.

Federal Tax Bracket

A range of incomes subject to a particular income tax rate, determined by the U.S. federal government.

Real After-tax Rate

The rate of return on an investment after adjusting for taxes and inflation, providing a clearer measure of purchasing power gain or loss.