A Disadvantage of the Likert Scale Is That

question 74

Multiple Choice

A disadvantage of the Likert scale is that:

• A) it is hard to judge what a single score means.
• B) it has no standard answers.
• C) bipolar adjectives must be identified.
• D) it is difficult for respondents to answer.

---

Definitions:

Optimal Size

Optimal size is the most efficient scale of operation for a firm where it can minimize its cost and maximize its profitability.

Synergy

The concept that the combined value and performance of two companies will be greater than the sum of the separate individual parts.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to assess the profitability of an investment.

Firm Value

The total market value of a company's equity plus its debt, reflecting the overall worth of the company.