Which of the Following Statements About Capital Budgeting Practices in Small

question 22

Multiple Choice

Which of the following statements about capital budgeting practices in small firms is true?

• A) A large number of owners rely on discounted cash flow (DCF) techniques.
• B) Small business owners are not very sophisticated about using theoretically sound financial methods.
• C) In the past, most small business owners relied on the internal rate of return (IRR) method to make capital budgeting decisions.
• D) Most small business owners today are unwilling to learn how to use discounted cash flow (DCF) tools.

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Definitions:

Psychoeducational

Relating to the provision of educational materials or programs designed to inform individuals about psychological concepts, mental health, and coping strategies.

Psychotherapeutic

Pertaining to the treatment of mental disorder by psychological means rather than medical.

Psychotherapeutic Group

A form of therapy involving a group of individuals who discuss their problems together, guided by a trained therapist, to foster healing and change.

Psychological Functioning

Concerns the mental processes and behaviors that encompass emotional, cognitive, and social aspects of an individual's well-being.