Which of the Following Is an Assumption Made by the Critical

question 11

Multiple Choice

Which of the following is an assumption made by the critical path method (CPM)

• A) The activity time estimates are accurate and stable.
• B) Activities are dependent on each other, without clearly defined start and finish times.
• C) Activities are interrupted many times before completion.
• D) The project network defines a tentative work sequence that can be changed anytime during the project.

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Definitions:

Liquidator's Power

Refers to the authority granted to a liquidator to manage and sell a company's assets, pay off creditors, and distribute any remaining assets to shareholders during the process of winding up a company.

Shareholders Before Creditors

This principle dictates that in the hierarchy of corporate structure, shareholders' equity is ranked lower than the claims of creditors in the event of a liquidation.

Ordinary Unsecured Creditor

A creditor who has no special rights to assets of a debtor in the event of the debtor's bankruptcy.

Trade Creditors

Entities to whom money is owed for goods and services provided on credit as part of normal business operations.