Which of the Following Statements Is True Regarding a Divisional

question 27

Multiple Choice

Which of the following statements is true regarding a divisional manager?

• A) A divisional manager is a part of the top-management team.
• B) Divisional managers act as outside directors for the company.
• C) A divisional manager is not a corporate manager.
• D) A marketing manager is an example of a divisional manager.

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Definitions:

Profitability Index

A financial metric that measures the relationship between the present value of future cash flows and the initial investment.

Conventional Cash Flows

Cash flow patterns characterized by an initial outlay or investment followed by a series of positive returns, commonly seen in traditional investments.

Required Return

The minimum expected return by investors for investing in a particular security or project, taking into account the risk associated with it.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used to analyze the profitability of a projected investment or project.