The Present Value of $10,000 Discounted at 5% Per Year

question 42

Multiple Choice

The present value of $10,000 discounted at 5% per year and received at the end of 5 years is

• A) $10,000(1.05)⁵
• B) $10,000 (1.05)^1/5
• C) $10,000/1.25
• D) $10,000/(1.05)⁵

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Definitions:

Line of Authority

The hierarchical structure in an organization that outlines reporting relationships and the flow of decision-making power.

Chain of Command

The chain of command is a system in an organization that defines the hierarchical line of authority and communication from top leadership to lower-ranking employees.

Span-of-control

The number of direct reports a manager or supervisor has, influencing the structure and management effectiveness of an organization.

Unity-of-command Principle

A management principle stating that each employee should receive orders from only one superior to avoid confusion and conflict.