A Firm May Approve Many New Product Projects If

question 6

Multiple Choice

A firm may approve many new product projects if:

• A) simple financial hurdles are not the only criterion.
• B) resource constraints are included in the NPV calculations.
• C) the management ignores small, quick-hit projects to focus on developing new product technologies.
• D) low-quality work reduces the quality of information used for decision making.

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Definitions:

Financial Manager

A person responsible for managing the financial health of an organization, ensuring efficient financial planning, and overseeing investment activities.

Responsibility

The obligation to act ethically and accountably in roles or tasks assigned to an individual or organization.

Primary Market

A marketplace where issuers sell new securities directly to investors for the first time.

Public Offering

The sale of equity shares or other financial instruments to the public for the first time.