Which One of the Following Is an Example of a Normative

question 74

Multiple Choice

Which one of the following is an example of a normative statement?

• A) A smart phone costs more than a laptop computer.
• B) Most smart phones sold in the United States are imported from other countries.
• C) Every student in college should have a smart phone.
• D) More people will buy smart phones as their prices decline.

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Definitions:

Investment Center

A decentralized unit in which the manager has the responsibility and authority to make decisions that affect not only costs and revenues but also the fixed assets invested in the center.

Plant Assets

Physical resources that are owned and used by a business and are permanent or have a long life; long-term or relatively permanent tangible assets such as equipment, machinery, and buildings that are used in normal business operations.

Decentralization

The distribution of decision-making power away from a central authority, allowing for greater autonomy at lower levels of an organization.

Authority

The power or right to give orders, make decisions, and enforce obedience.