Before Becoming a Publicly Traded Corporation, Groupon, Inc

Multiple Choice

Before becoming a publicly traded corporation, Groupon, Inc., relied on a financial metric it named "adjusted consolidated segment operating income" (ASCOI) to assess performance. ASCOI measured the company's operating income excluding several major expenses, including marketing and acquisition-related costs. One reason Groupon relied on ASCOI to assess performance may have been to:

A) Attract new subscribers to its service.
B) Strengthen its balance sheet.
C) Reduce its weighted average cost of capital.
D) Reduce congruence problems caused by applying traditional accounting measures in a new business environment.