Multiple Choice
Identify the
letter of the choice that best completes the statement or answers the question.
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1.
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Value
management can be characterised by the following: a. | Resource optimisation, alignment, adaptation and profit
maximisation | c. | Resource
optimisation, alignment, adaptation and cost minimisation | b. | Resource
optimisation, alignment, adaptation and cash flow maximisation | d. | Resource optimisation, alignment, adaptation and factor
minimisation | | | | |
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2.
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A
company made a profit of £60 million on assets employed of £480 million. The industry
average for return on capital employed was 10 per cent. What is the calculated intangible value
for the comoany concerned? a. | 10 per cent | c. | £12 million | b. | 12.5 per
cent | d. | £48
million | | | | |
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3.
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Lev
calculates net earnings (in his 'knowledge earnings method' of calculating intangible value after
deducting: a. | a charge for the
use of the firm's monetary assets and intangible assets | c. | a charge for the use of the firm's monetary assets and
intangible assets | b. | a charge for the use of the firm's non-monetary assets and
intangible assets | d. | a charge for the
use of the firm's non monetary assets and its capital employed | | | | |
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4.
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The
value creation index (VCI) published by the Cap Gemini Centre for Business Innovation identified nine
categories of non-financial performance that appeared to determine coprorate value creation.
Which of the following did not appear in the list? a. | Customer
relations | c. | Brand
value | b. | Quality | d. | Research and development expenditure | | | | |
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5.
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Prepotency in asset formation in firms reflects the idea that: a. | Some assets are
more valuable than others | c. | Some assets have
no direct bearing on value creation | b. | Some assets are required before the value in others can be
realised | d. | Some assets are
less valuable than others | | | | |
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