Which of the Following Statements Is False

question 11

Multiple Choice

Which of the following statements is false?

• A) Two of the above.
• B) If the payback period is less than the maximum acceptable payback period, accept the project.
• C) If the payback period is greater than the maximum acceptable payback period, reject the project.
• D) If the payback period is less than the maximum acceptable payback period, reject the project

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Definitions:

Productive Efficiency

Achieved when goods or services are produced at the lowest possible cost and utilizing resources in the best way possible.

Average Total Cost

The total cost of production divided by the quantity of output produced, showing the average cost per unit.

Technological Advance

Progress in technology that often leads to improvements in efficiency, productivity, and the development of new products.

Venture Capital

Financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential.