Which of the Following Is a Legitimate Reason for Not

question 26

Multiple Choice

Which of the following is a legitimate reason for not delegating?

• A) 'I can't afford to have my staff members make a mistake for which I am responsible.'
• B) 'No one knows exactly how I want this job done.'
• C) 'Delegating this task to someone so new at this time could result in a workplace accident.'
• D) 'This task is too important to entrust to anyone else.'
• E) 'My staff members are too inexperienced to do this. I have to do it myself.'

---

Definitions:

Cost of Capital

The rate of return that a business must achieve in order to generate value, representing the opportunity cost of investing capital in a specific business rather than in an alternative venture.

Average Return

A statistical measure representing the mean outcome or yield from an investment over a given period of time.

NPV

Net Present Value; a calculation used to determine the value of an investment by subtracting the present values of cash outflows (including initial cost) from the present values of cash inflows over a period of time.

IRR

Internal Rate of Return; the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.