Priya, a Manager at an IT Firm, Has to Make

question 48

Multiple Choice

Priya, a manager at an IT firm, has to make a decision on the amount of money to be allocated for purchasing five new laptops for her team members. She is aware of the current price of the laptops and has the information about the amount of money spent on purchasing new laptops the previous year. This type of environment that is ideal for decision-making is known as a(n) _____.

• A) structured environment
• B) risk environment
• C) certain environment
• D) threat environment
• E) unanticipated environment

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold.

Annual Net Cash Flows

The total amount of money that flows into and out of a business over a year, after all revenues are collected and expenses are paid.

Marginal Tax Rate

The rate at which an additional dollar of income is taxed, indicating the tax impact on your next dollar earned.

Depreciation

The accounting method of allocating the cost of a tangible or physical asset over its useful life.