Nontax Factor(s) Investors Should Consider When Choosing Between Investments Include

question 49

Multiple Choice

Nontax factor(s) investors should consider when choosing between investments include:

• A) before-tax rates of return.
• B) after-tax rates of return.
• C) liquidity needs.
• D) before-tax rates of return and after-tax rates of return.
• E) before-tax rates of return and liquidity needs.

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Definitions:

Diminishing Marginal Returns

A principle stating that as an investment in a particular area increases, the rate of profit from that investment, after a certain point, starts to decrease.

Monitoring

The regular observation and recording of activities taking place in a project or program, for oversight and evaluation purposes.

Complexity

Describes a system or problem that involves numerous parts or components interconnected in a way that makes prediction, understanding, or modeling challenging.

Average Costs

The total costs of production divided by the number of goods produced, indicating the cost per unit of output.