The Following Statements Regarding the NPV Rule and the Rate

question 78

Multiple Choice

The following statements regarding the NPV rule and the rate of return rule are true except:

• A) Accept a project if its NPV > 0
• B) Reject a project if the NPV < 0
• C) Accept a project if its rate of return > 0
• D) Accept a project if its rate of return > opportunity cost of capital

---

Definitions:

Social Consequence Entrepreneurship

Entrepreneurial activities that prioritize social and environmental benefits over profits.

Primary Market Impact

The effect on the market when new securities are issued, influencing investor demand, stock prices, and company capital.

Traditional Entrepreneurs

Individuals who start businesses with the intention to generate profits, often focused on growth, scalability, and market share.

Identify Opportunities

The process of recognizing and evaluating potential pathways or strategies that could lead to growth, development, or competitive advantage.