If a Project Involves Risk, Managers Can Account for the Risk

question 104

Multiple Choice

If a project involves risk, managers can account for the risk by_______ the discount rate, which _______the present value of the future profits.

• A)decreasing; increases
• B)increasing; decreases
• C)increasing; increases
• D)decreasing; decreases

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Definitions:

Rehabilitation

A process aimed at enabling individuals, especially offenders, to reintegrate into society as constructive members, often through treatment and education.

Unfair Advantage Theory

A principle in ethics and law that posits certain actions or conditions produce inequitable benefits or favoritism, undermining fairness or meritocracy.

Rational Character

The aspect of a person's personality that involves logical thinking, reasoning, and the ability to make sound judgments.

Rehabilitative Approach

A method focused on rehabilitating offenders rather than solely punishing them, aiming to prevent future crimes.