PIE-B serves as a supplemental balance sheet

Sigchi4life
Category:
Business & Finance
Price: $10 USD

Question description

PIE-B from Chapter 5 of your reading.Cohen (2005) describes how
PIE-B serves as a supplemental balance sheet and a place where we can record
things that add value.The most important feature of the PIE-B is
that it represents an effort to analyze intangibles that is not required or even
permitted by the accounting rules.

To construct a firm's PIE-B, we have
to answer two questions about each thing under consideration: Who owns it, and
to what extent?

One would assume this would be pretty straight
forward.However, consider a great engineer who helps to invent
something remarkable for a company.The company does not own that
persons intelligence, creativity, or educational degrees that come along with
their services.A company would only experience economic benefit
from this as long as the employee stays with the company.

What could companies do to minimize their losses associated with
employees like this who bring value to the organization?

50+words

Tutor Answer

(Top Tutor) Daniel C.
(997)
School: University of Maryland
PREMIUM TUTOR
Studypool has helped 1,244,100 students
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1826 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors