Projects Are Often Underfunded in the Concept Stage Because

question 53

Multiple Choice

Projects are often underfunded in the concept stage because:

• A)the project requirements were deliberately understated.
• B)there is complete trust in project managers by top management so more resources can be asked for at any time.
• C)the project's goals are too clearly defined.
• D)the project's top management sponsor is too influential.

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Definitions:

Further Innovation

involves the continuous process of making improvements or introducing new methods, ideas, or products beyond current advancements.

Expected-Rate-of-Return Curve

A graph depicting the expected returns on investment as a function of the level of risk.

MB = MC Decision Framework

A decision-making principle where optimal allocation of resources is achieved when marginal benefit equals marginal cost.

Marginal Benefit Element

The heightened sense of satisfaction or value realized by a consumer upon acquiring another unit of a good or service.