Which of the Following Is Not an Important Qualitative Factor

question 32

Multiple Choice

Which of the following is not an important qualitative factor to consider in the capital budgeting decision?

• A) regulations that mandate investment to meet safety, environmental, or access requirements.
• B) technological developments within the industry may require new facilities to maintain customers or market share at the cost of lower ROI for a period of time.
• C) commitment to a segment of the business that requires capital investments to achieve or regain competitiveness even though that segment does not have as great an ROI as others.
• D) all of these are important qualitative factors to consider.

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Definitions:

Objective Outcomes

are measurable and observable results obtained from a process, project, or activity that can be verified independently.

Subjective Outcomes

Results or consequences that are based on personal feelings, tastes, or opinions.

Socialization Tactic

Methods or strategies employed to acclimate new members to the social and cultural norms of an organization or group.

Fixed Sequence

A predetermined or unalterable order of actions, events, or processes.