Among the Following Choices, an Operations Manager Might Best Evaluate

question 4

Multiple Choice

Among the following choices, an operations manager might best evaluate political risk of a country by looking at which type of country ranking?

• A) based on competitiveness
• B) based on cost of doing business
• C) based on corruption
• D) based on magnitude of government social programs
• E) based on average duration between presidential/prime minister elections

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Definitions:

Payback Period

The duration it takes for an investment to generate enough cash flow to recover its initial cost.

Average Accounting Returns

A financial ratio that measures a firm's average profitability relative to its investment, typically calculated as net income divided by average book value of investment.

Project

A systematically planned group of tasks that are interdependent, meant to be executed within a fixed timeframe whilst respecting certain financial and additional limits.

Mutually Exclusive Projects

Projects in which the acceptance of one proposal means the others cannot be pursued, requiring a choice to be made.