Under the Concept of Establishment of Responsibility, How Many People

question 31

Multiple Choice

Under the concept of establishment of responsibility, how many people should have the ultimate responsibility?

• A)Everyone in the organization.
• B)An individual and his/her supervisor.
• C)Only one individual.
• D)The CEO.

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Definitions:

Cost Of Capital

The earnings rate a firm must achieve on its investment endeavors to preserve its market value and draw in capital.

Discount Rate

In discounted cash flow analysis, it's the rate of interest used to determine today's value of cash flows expected in the future.

Certainty Equivalent Approach

A method used in capital budgeting and investment finance that adjusts the future cash flows of risky investments to reflect their riskiness as compared to a certain cash flow.

Computer Simulation

Computer Simulation is a digital simulation of a real-world process or system over time, using computer software to study the behavior under various conditions.