Which of the Following Is False When Evaluating Capital Investments

question 58

Multiple Choice

Which of the following is false when evaluating capital investments tied to a CSR objective?

• A)CSR investment proposals cannot be analyzed with the typical managerial accounting methods used for other types of capital projects.
• B)Companies may evaluate an investment using a qualitative approach rather than a traditional quantitative approach.
• C)Companies may evaluate an investment considering the reduction of potential litigation risks.
• D)Companies may evaluate an investment considering the possibility of opening new consumer markets with a sustainable product desired by consumers.

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Definitions:

Competitive Market

A market structure characterized by a large number of buyers and sellers, where no single entity has the power to significantly influence prices or market conditions.

Average Revenue

The revenue received per unit of output sold.

Quantity Demanded

The amount of a product that consumers are willing and able to purchase at a given price.

Price

Price is the amount of money expected, required, or given in payment for something, reflecting the value of goods or services in monetary terms.