A Decision That Occurs When Managers Evaluate a Proposed Capital

question 4

Multiple Choice

A decision that occurs when managers evaluate a proposed capital investment to determine whether it meets some minimum criteria is a(n) :

• A)preference decision.
• B)capital decision.
• C)screening decision.
• D)incremental decision.

---

Definitions:

Brand Loyal

The tendency of consumers to consistently purchase products or services from the same brand over time, often due to satisfaction, perceived value, or emotional connection.

Inertia

A state of inactivity or resistance to change in consumer behavior, often due to habit or perceived effort.

Compensatory Rule

A decision-making strategy where negative attributes can be compensated for by positive attributes.

Product Signal

An indicator or marker that conveys information about the qualities or characteristics of a product to consumers.