Which of the Following Would Not Involve a Capital-Budgeting Analysis

question 18

Multiple Choice

Which of the following would not involve a capital-budgeting analysis?

• A) The acquisition of new equipment.
• B) The addition of a new product line.
• C) The adoption of a new cost driver for overhead application.
• D) The construction of a new distribution facility.
• E) The decision of a pro football team to trade for and sign a star quarterback to a long-term contract.

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Definitions:

Conformity

The act of aligning one's beliefs, attitudes, and behaviors with those of a group or societal norms.

Lowball Technique

A persuasion strategy by which an offer is initially made attractive, but less favorable terms are introduced after commitment is obtained.

Centralised Communication

A form of communication in which all decisions and discussions flow through a central point or leader, common in hierarchical organizations.

Group Pressure

The influence exerted by a group on its members to conform to the group's norms and expectations, often affecting behavior and decision-making.