An Optimal Decision Is One That Chooses

question 49

Multiple Choice

An optimal decision is one that chooses

• A)the most desirable alternative among the possibilities permitted by the resources available.
• B)the lowest cost method of meeting goals, without regard to quality or any other feature.
• C)among various possible goals and offends no one, so that all are equally happy.
• D)among equally important goals, and thereby avoids the "indispensable necessity" syndrome.
• E)among possible goals in such a way that spends as little money as possible.

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Definitions:

Book Value

The net value of a company's assets as found on its balance sheet, calculated as total assets minus intangible assets (patents, goodwill) and liabilities.

Consolidated Net Income

The total net income of a parent company and its subsidiaries after eliminating intra-group transactions and distributions.

Fair Value Allocations

The process of assigning fair value to the individual assets and liabilities acquired during a business combination.

Investment

The act of allocating resources, usually money, with the expectation of generating an income or profit over time.