Which of the Following Actions Taken by an Organization Leads

question 39

Multiple Choice

Which of the following actions taken by an organization leads to the creation of strong property rights?

• A) using 360 degrees performance evaluation method for conducting employee appraisals
• B) centralizing decision-making authority
• C) giving innovative employees stock options proportional to the increase in profitability that can be attributed to their efforts
• D) giving employees an opportunity to learn new skills with the help of job rotation

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Definitions:

Cash Flow

The net amount of cash being transferred into and out of a business, a key indicator of financial health.

WACC

WACC, or Weighted Average Cost of Capital, represents a firm's blended cost of capital across all sources, including debt and equity, weighted by their respective proportions.

NPV

Net Present Value, a calculation used to determine the value of a project or investment by discounting its future cash flows to the present.

Cash Flow

The total amount of money being transferred into and out of a business, especially considered important for maintaining liquidity.