The Present Value of $10000 to Be Received in 5

question 66

Multiple Choice

The present value of $10000 to be received in 5 years will be smaller if the discount rate is

• A) increased.
• B) decreased.
• C) not changed.
• D) equal to the stated rate of interest.

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Definitions:

Bureaucratic Structures

Organizational forms that are characterized by a hierarchical arrangement of jobs, reliance on formal rules and regulations, and a clear distinction of labor.

Environmental Uncertainty

A lack of information regarding what exists in the environment and what developments may occur.

Strategic Alliance

A partnership between two or more companies to pursue a set of agreed upon objectives while remaining independent organizations.

Cooperative Structure

A framework within an organization where members work together towards common goals, often with shared responsibilities and decision-making.