Policy Evaluation, to Be Effective, Must Account for ALL Costs

question 8

True/False

Policy evaluation, to be effective, must account for ALL costs and benefits - not just the intended costs and benefits.

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Definitions:

Compromise Policy

A strategy of finding a middle ground between differing views or objectives in a negotiation or decision-making process.

Flotation Costs

Expenses incurred by a company when issuing new securities, such as underwriting fees, legal fees, and registration fees.

Low-Dividend Policy

A strategy where a company distributes a small portion of its earnings in the form of dividends, preferring to reinvest the majority back into the business.