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:

Control Chart

A graphical tool for monitoring process stability and variability by plotting measured values against predetermined control limits.

P Chart

A type of control chart used for monitoring the proportion of defective items in a process over time, useful in quality control.

Standard Deviation

An index of the amount of variability in a set of data points, indicating average distance from the dataset's mean value.

Boutique Hotel

A small and stylish hotel that offers personalized service and is often situated in a fashionable or unique setting.