An Alternative to the Limitation of Focusing on Profits Would

question 141

Multiple Choice

An alternative to the limitation of focusing on profits would be

• A)communicating other measures are important but continue to base rewards on profits.
• B)overstate the value of ending inventory in order to reduce cost of goods sold and improve operating income performance.
• C)focus on long-term objectives and appropriate emphasis on profit.
• D)analyze the product mix.

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Definitions:

Partnership Creditor

A creditor that has a claim against the assets or earnings of a partnership, often arising from debts or obligations of the partnership.

Contract Obligation

A legal duty under a contract that a party must fulfill as part of the contractual agreement.

Dissolution

The process by which a company's existence is legally terminated.

Termination

The act of ending or concluding something, such as a contract, employment, or agreement.