A Written Set of Instructions That Describes the Series of Actions

question 100

Multiple Choice

A written set of instructions that describes the series of actions that a manager should take in a specific situation is known as a

• A)policy.
• B)standing operating procedure.
• C)scenario plan.
• D)rolling plan.

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Definitions:

Profitability Index

A financial tool used to evaluate the desirability of an investment, calculated as the present value of future cash flows divided by the initial investment.

Net Cash Flow

The variance between the cash coming into and going out of a business within a given timeframe.

Discount Rate

The interest rate used to discount future cash flows to their present value, enabling comparison of the value of investments made at different times.

Net Present Value

A method used to evaluate investments by calculating the present value of expected future cash flows minus the initial investment cost.