Uptown Promotions Has Three Divisions

question 57

Multiple Choice

Uptown Promotions has three divisions.As part of the planning process,the CFO requested that each division submit its capital budgeting proposals for next year.These proposals represent positive net present value projects that fall within the long-range plans of the firm.The requests from the divisions are $4.2 million,$3.1 million,and $6.8 million,respectively.For the firm as a whole,the management of Uptown Promotions has limited spending to $10 million for new projects next year.This is an example of:

• A)scenario analysis.
• B)sensitivity analysis.
• C)determining operating leverage.
• D)soft rationing.
• E)hard rationing.

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Definitions:

Professional Wisdom

Professional wisdom encompasses the deep knowledge, expertise, and ethical judgement that individuals in a profession accumulate over time, enhancing their ability to make sound decisions.

Primary Prevention

Strategies or interventions aimed at preventing the onset of diseases or injuries before they occur.

Tertiary Prevention

Interventions aimed at managing existing diseases in individuals to prevent further deterioration, complications, or recurrence, typically involving treatment or rehabilitation.

Secondary Prevention

Efforts aimed at early detection and intervention to prevent the progression or worsening of a disease or problem after it has initially occurred.