Which of the Following Is NOT a Typical Lag Measure

question 8

Multiple Choice

Which of the following is NOT a typical lag measure used in succession management?

• A)decreased number of bosses as talent developers
• B)increased ratio of internal to external hires in key positions
• C)increased average number of candidates for key positions
• D)decreased average number of positions with no successors

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Definitions:

Goodwill

An intangible asset that arises when a buyer acquires an existing business at a price higher than the fair market value of its net identifiable assets.

Fair Market Value

is an estimate of the market value of a property, based on what a knowledgeable, willing, and unpressured buyer would likely pay to a knowledgeable, willing, and unpressured seller in the market.

Identifiable Assets

Assets that can be separately identified and valued in a business combination, distinguishable from goodwill.

FIFO System

First-In, First-Out method, an inventory valuation strategy where the oldest items are sold or used first.