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:

Maslow

American psychologist who developed the hierarchy of needs, a theory in psychology that prioritizes fundamental human wants and desires crucial for individual growth.

Self-actualization

The realization or fulfilment of one's talents and potentialities, considered as a drive or need present in everyone.

Maslow

An American psychologist known for creating Maslow's hierarchy of needs, a theory in psychology that prioritizes human needs into a five-tier model of motivation.

Esteem Needs

In Maslow's hierarchy of needs, esteem needs are the fourth level, involving the human desire for respect, self-esteem, and recognition from others.