Join thousands of students who trust us to help them ace their exams!Watch the first video
Multiple Choice
In the context of investments in securities, which of the following best describes the values that signify what an organization and its members are striving to accomplish?
A
Book value per share
B
Market capitalization
C
Dividend yield
D
Organizational objectives
Verified step by step guidance
1
Understand the context of the question: It is asking about values that signify what an organization and its members are striving to accomplish, which relates to organizational goals and objectives rather than financial metrics.
Clarify the financial terms provided: Book value per share refers to the equity value of a company divided by the number of outstanding shares, Market capitalization is the total market value of a company's outstanding shares, and Dividend yield is the ratio of a company's annual dividend compared to its share price.
Recognize that these financial metrics (Book value per share, Market capitalization, Dividend yield) are quantitative measures of a company's financial performance, not values that reflect organizational aspirations or objectives.
Identify that 'Organizational objectives' is the correct answer because it directly refers to the goals and values an organization and its members aim to achieve, which is distinct from financial metrics.
Conclude that the question is emphasizing the importance of understanding the difference between financial metrics and broader organizational goals, which are qualitative and strategic in nature.