Select the Benefits to a Company of Using Sensitivity Analysis

question 7

Multiple Choice

11ec37eb_8bab_63de_97b9_cd36936cf705__00 Select the benefits to a company of using sensitivity analysis in investment appraisal. (Select all the true statements.)

• A) Sensitivity analysis enables a company to determine the effect of changes to variables on the planned outcome.
• B) Sensitivity analysis enables a company to assess the risk associated with a project.
• C) Sensitivity analysis enables identification of fixed costs that are of special significance.
• D) Sensitivity analysis enables risk management strategies to be put in place to focus on those variables of special significance.

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Definitions:

Five-Factor Model

A model that describes personality using five broad dimensions, each of which is composed of a constellation of personality traits.

Cardinal Traits

Fundamental personality characteristics that dominate and shape an individual's behavior and attitudes.

PEN Dimensions

A psychological theory focusing on three major traits of personality: Psychoticism, Extraversion, and Neuroticism.

Hans Eysenck

A British psychologist known for his theories on personality and intelligence, emphasizing genetics over environment.