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CityProtect Corp

question 69

Multiple Choice

CityProtect Corp., a medium-sized financial services company, has a departmentalization structure where the employees are grouped together based on their area of expertise. Thus, the firm has separate teams that handle loans, stock broker services, accounting services, insurance plans, etc. This is an example of _____ departmentalization.


Definitions:

Cash Payback Period

The amount of time it takes for an investment to generate enough cash flow to recover its initial cost.

Present Value Factor

A factor used in calculating the present value of a future cash flow, discounting its value to reflect time and risk.

Internal Rate of Return Method

A capital budgeting technique used to evaluate the profitability of investments or projects, determining the discount rate that makes the net present value of all cash flows from a particular project equal to zero.

Present Value Concepts

Financial principles that determine the current worth of a future sum of money or stream of cash flows, given a specified rate of return.

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