Project Life Cycles

question 38

Multiple Choice

Project life cycles

• A) always include the preparation of a written request for proposal.
• B) follow a rigid process that includes development of a project charter and RFP.
• C) sometimes move from initiating to planning and performing phases without a formal request for proposal.
• D) may include the funds available for completing the project during each phase.

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Definitions:

Operating Cycle

The duration of time from the acquisition of inventory to the collection of cash from receivables, reflecting the company's efficiency in using its assets.

Times Interest Earned

A financial ratio that measures a company's ability to cover its interest charges with its earnings before interest and taxes (EBIT).

Debt-To-Equity Ratio

A calculation to determine a firm's financial leverage by dividing the total amount of its liabilities by the equity of its shareholders.

Equity Multiplier

A financial ratio indicating the proportion of a company's assets that are financed by stockholders’ equity, showing the level of financial leverage.