In applying the treasury stock method of computing diluted earnings per share, when is it appropriate to use the average market price of common stock during the year as the assumed repurchase price?
a. when the average market price is lower than the exercise price
b. when the average market price is higher than the exercise price
c. never
d. always
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Ответ:
Option 2 is only correct.
Explanation:
The reason is that the physical capital is the physical assets used for production of goods and services whereas the Technological knowledge refers to the knowledge of increasing the productivity by utilizing physical capital. So these two statements were incorrect.
The second statement is correct because the better tools or technology we have the better we can produce. This means these technological tools helps workers to produce more so the statement is correct.