Which of the Following Statements Is CORRECT

question 54

Multiple Choice

Which of the following statements is CORRECT?

• A) If a firm is found guilty of cannibalization in a court of law, then it is judged to have taken unfair advantage of its customers.Thus, cannibalization is dealt with by society through the antitrust laws.
• B) If cannibalization exists, then the cash flows associated with the project must be increased to offset these effects.Otherwise, the calculated NPV will be biased downward.
• C) If cannibalization is determined to exist, then this means that the calculated NPV if cannibalization is considered will be higher than the NPV if this effect is not recognized.
• D) Cannibalization, as described in the text, is a type of externality that is not against the law, and any harm it causes is done to the firm itself.
• E) If a firm is found guilty of cannibalization in a court of law, then it is judged to have taken unfair advantage of its competitors.Thus, cannibalization is dealt with by society through the antitrust laws.

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Definitions:

Organizationally Desired Emotions

Refers to the specific emotional states or responses that an organization aims to elicit in its employees in order to foster a desirable work environment or achieve its goals.

Attitudes

Mental and emotional entities that embody an individual's positive or negative perspectives towards objects, people, or situations.

Evaluation

The systematic assessment of the merit, value, or significance of an object, project, or program, based on criteria and standards.

Cognitive Dissonance

The mental discomfort experienced by a person who simultaneously holds two or more contradictory beliefs, ideas, or values.