When Calculating ROI and RI Under the Opportunity Cost Principle

question 7

Multiple Choice

When calculating ROI and RI under the opportunity cost principle the:

• A) original cost is used as the investment base.
• B) written-down value is used as the investment base.
• C) market value is used as the investment base.
• D) none of the options would be used when calculating ROI and RI under the opportunity cost principle.

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Definitions:

Financial Computers

Computers or computer systems specifically designed and used for financial transactions, operations, and planning.

White-Collar Crime

A variety of nonviolent illegal acts against society that occur most frequently in the business context.

Sarbanes-Oxley Act

A U.S. law enacted in 2002 to protect investors from the possibility of fraudulent accounting activities by corporations.

Racketeer Influenced

Relates to activities influenced by organized crime, often associated with businesses or operations that engage in illegal practices.