Question: Net book value produces a misleading increase in return on investment because: a. Investment centres with old assets will show a higher return on investment

Net book value produces a misleading increase in return on investment because:

a.

Investment centres with old assets will show a higher return on investment than centres with new assets.

b.

Investment centres with old assets will show a lower return on investment than investment centres with relatively newer assets.

c.

Investment centres with new assets will show a higher return on investment than investment centres with old assets.

d.

Investment centres with old assets will show an equal return on investment compared with their newer counterparts.

e.

Book value reflects changing market values.

Which of the following is an example of an intrinsic reward?

a.

Cash bonus.

b.

Personal satisfaction.

c.

Share options.

d.

Larger office.

e.

Certificate of merit.

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