To Monitor the Quality of Work in Progress, Many Businesses

question 114

Multiple Choice

To monitor the quality of work in progress, many businesses are realizing the value of the international quality standards known as ______.

• A) ISO 6000
• B) ISO 9000
• C) GATT 3000
• D) GATT 9000

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Definitions:

Risk Averse

The tendency to prefer certainty over risk, where an individual opts for the investment with the least potential for financial loss.

NPV

A financial metric that calculates the total value of a project or investment by discounting future cash flows back to their present value and subtracting initial investment cost.

Scenario Analysis

A business planning technique in which the implications of variations in planning assumptions are explored. Also known as “what-if-ing.”

Abandonment Option

A financial decision allowing companies to cease a project or investment to avoid further losses.