Which of the Following Is an Example of a Normative

question 222

Multiple Choice

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

• A) If cars become more expensive, fewer people will buy them.
• B) Car prices should be affordable.
• C) If wages increase, firms will fire some workers.
• D) Fewer people die in larger cars than in smaller cars.
• E) Cars emit pollution.

Understand the concept of horizontal and vertical analysis for comparing financial condition and performance over time or against a base amount.

Grasp the foundation of financial reporting as a tool for communicating useful decision-making information.

Comprehend the significance and method of setting industry and intracompany standards for financial analysis.

Recognize techniques for evaluating company performance including past, current, and future assessments.

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Definitions:

Acoustical Signals

Sounds or vibrations used for communication or detection in various organisms and technologies.

Chemical

A substance produced by or used in a chemical process.

Visual

Relating to the sense of sight, involving the ability to see, or the processing of visual information by the brain.

Right Whales

A group of large baleen whales with distinctive callosities on their heads, facing numerous threats leading to their status as endangered species.