A Reason That a Small Business Would Not Use a Discounted

question 96

Multiple Choice

A reason that a small business would not use a discounted cash flow technique in evaluating capital investments would be:

• A)company management has a preference for another quantitative method.
• B)liquidity is less of an issue for a small company.
• C)non-financial issues may be more important for a small business.
• D)small businesses invest more in short-term assets than large companies.

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Definitions:

Economic Analysis

The process of examining statistics, market trends, and financial principles to make a comprehension of the economic landscape for decision-making purposes.

Product Promotion

Product Promotion involves various techniques and strategies used by businesses to inform, persuade, and remind consumers about their products and services.

Strategic Pricing

Involves setting prices based on market factors, competition, and company goals to maximize profitability or market share.

Product Differentiation

A marketing strategy that businesses use to distinguish their products from those of competitors by emphasizing unique features, quality, or design.