Four of the Following Statements Are Truly Disadvantages of the Regular

question 50

Multiple Choice

Four of the following statements are truly disadvantages of the regular payback method,but one is not a disadvantage of this method.Which one is NOT a disadvantage of the payback method?

• A) Lacks an objective,market-determined benchmark for making decisions.
• B) Ignores cash flows beyond the payback period.
• C) Does not directly account for the time value of money.
• D) Does not provide any indication regarding a project's liquidity or risk.
• E) Does not take account of differences in size among projects.

---

Definitions:

Marketing Channels

Pathways through which goods and services flow from producers to consumers, involving intermediaries like wholesalers and retailers.

Drugstores

Retail shops where medications and other healthcare products are sold.

Competitive Pressures

Forces that challenge a company's market position, including competition from other firms, pricing strategies, and innovation demands.

Pricing Consistency

The strategy of maintaining stable prices for products or services over a period of time to build customer trust and loyalty.