Which of the Following Is True Regarding a Normative Statement

question 278

Multiple Choice

Which of the following is true regarding a normative statement?
i.It uses the ceteris paribus assumption.
ii.It is a value judgment.
iii.It accounts for opportunity costs.

• A) i and iii
• B) ii and iii
• C) i only
• D) ii only
• E) i, ii, and iii

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Definitions:

Complexity

The state or quality of being intricate or complicated.

Diversification Strategy

A business policy of increasing the variety of products or markets served to spread risk and create opportunities for growth.

Business Area

A specific segment of a business organization that focuses on a particular market or product line.

Cash Cow

A business unit or product that generates a consistently high amount of cash flow, exceeding its maintenance and development costs, typically funding other business areas.