Regardless of Which Selection Method a Firm Uses,it Should Always

question 8

Multiple Choice

Regardless of which selection method a firm uses,it should always:

• A)be able to predict how much revenue will be returned to the firm each year.
• B)know which project will ultimately succeed and which ones will fail.
• C)be objective in their selection method.
• D)use a weighted scoring technique.

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Definitions:

Restricted

Assets or funds that are reserved for a specific purpose and cannot be freely used for other expenses or investments.

Stock Split

The division of a company's existing stock into multiple shares to boost the liquidity of the shares, though the market capitalization remains unchanged.

Marketability

The ease with which an asset can be bought or sold in the market without affecting its price.

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, thereby having an ownership interest in the company.