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Below Are Four Statements About Business and Technology Alignment, as It

question 56

Multiple Choice

Below are four statements about business and technology alignment, as it pertains to service-oriented computing. Which of these statements is false?

Recognize the importance of considering project risk when evaluating investments.
Comprehend the relationship between firm financing strategies and cost of capital.
Identify the role of the tax rate in determining the WACC.
Understand the use and importance of the SML (Security Market Line) approach in estimating the cost of equity.

Definitions:

Nonoperating Income

Income derived from activities not related to a company's core business operations, such as investment income or gains from the sale of assets.

Operating Expenses

Costs related to the day-to-day operations of a business, such as rent, utilities, and payroll.

Disclosure Notes

These are explanatory notes included with financial statements to provide additional detail and context for items presented in the financial statements.

Long-Term Supply Agreements

Contracts between companies and their suppliers to provide goods or services over an extended period, often to secure pricing or ensure supply.

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