Which of the Following Is False? to Increase Value, an Organization

question 21

Multiple Choice

Which of the following is false? To increase value, an organization must

• A)decrease price or cost while holding perceived benefits constant.
• B)change both perceived benefits and price in the same proportion.
• C)increase perceived benefits while holding price or cost constant.
• D)increase perceived benefits while reducing price or cost.

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Definitions:

Total Liabilities

The sum of all current and long-term obligations that a company owes to others.

Total Current Assets

The sum of all assets expected to be converted into cash, sold, or consumed within one year or the operating cycle, whichever is longer.

Base Year Figure

A benchmark or reference point in time used for comparative analysis, often in the calculation of indexes and financial ratios.

Retained Earnings

Net income retained in a corporation.