Which of the Following Is NOT a Factor That Determines

question 22

Multiple Choice

Which of the following is NOT a factor that determines the amount of a manager's decision discretion?

• A) Characteristics of the manager
• B) Characteristics of the organization
• C) Cohesiveness of the Board of Directors
• D) External environmental sources

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Definitions:

Capital Expenditure Decision Process

The process of making decisions related to the acquisition of capital assets, taking into consideration their costs, benefits, and risks.

Profitability Index

A financial metric that compares the present value of future cash flows from an investment to its initial cost, used to evaluate investment attractiveness.

Net Present Value

The difference between the present value of cash inflows and outflows over a period of time, used in capital budgeting.

Capital Rationing

A strategic financial approach where a company restricts its spending on new projects due to limited resources.