BP's Response to the 2010 Deepwater Horizon Oil-Rig Explosion in Alaska

question 82

True/False

BP's response to the 2010 Deepwater Horizon oil-rig explosion in Alaska is an excellent example of a company's use of thoughtful crisis management to help its public relations.

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Definitions:

Long-lived Assets

Assets expected to provide economic benefits over a period longer than one year, such as buildings, machinery, and equipment.

Capitalizes Expenditures

The process of recording a cost as an asset, rather than an expense, to be written off over the future period.

Rate-of-Return Comparisons

A method of evaluating the profitability of different investments by comparing their rates of return.

Operating Cycles

The period of time it takes for a business to purchase or create inventory, sell the products, and collect cash from the sales.