Social Capital Has Many Potential Benefits

question 73

Multiple Choice

Social capital has many potential benefits. However, some argue that social capital

• A) is always beneficial to a firm.
• B) may or may not be beneficial to a firm.
• C) usually restricts the productivity of employees.
• D) always hurts firm performance.

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Definitions:

Present Values

The current worth of a future sum of money or stream of cash flows given a specified rate of return, used in discounting to address the time value of money.

Annuities

An investment product sold by financial institutions that pays out a fixed stream of payments to the individual, and is often used as an income stream for retirees.

Compute

To calculate or determine by mathematical means.

Compounded Semiannually

Refers to the process of calculating interest on both the initial principal and the accumulated interest over two periods within a year.