Why Is It Usually Necessary to Use the Time Value

question 44

Multiple Choice

Why is it usually necessary to use the time value of money when performing a cost-benefit analysis?

• A) For an investment project to be considered, costs must have a higher dollar value from benefits.
• B) Although costs and benefits generally occur concurrently, the benefits will accrue value over time, due to interest.
• C) In most investment projects costs are incurred up front, but benefits are provided in the future.
• D) For practical purposes, a dollar today may be considered to be equal to a dollar at some future time.

Identify and differentiate between various organizational cultures and climates.

Recognize the impact of leadership patterns on organizational health and employee well-being.

Comprehend the role of organizational structures and their effects on information flow and decision-making.

Interpret the importance of artifacts in shaping organizational culture.

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Definitions:

Cumulative Voting

A method of voting used in elections for directors of a corporation, allowing shareholders to multiply the number of votes they have by the number of positions available and to allocate their votes among candidates as they see fit.

Minority Shareholders

Individuals or entities that own less than 50% of a company's shares and therefore have limited control over company decisions.

Shareholder's Derivative Suit

A legal action brought by a shareholder on behalf of a corporation to enforce the corporation's rights when the corporation's management fails to do so.

Cumulative Voting

A voting system in corporate elections that allows shareholders to concentrate all their votes on one candidate for the board of directors.