A Consultant Has Made Two Recommendations to You in a Report

question 241

Multiple Choice

A consultant has made two recommendations to you in a report:
1) To include legal terminology in your Service Level Agreements (SLAs)
2) It is not necessary to be able to measure all the targets in an SLA Which of the recommendations conform to Service Level Management good practice?

• A) 1 only
• B) 2 only
• C) Both of the above
• D) Neither of the above

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Definitions:

Intrinsic Value

The perceived or calculated true value of an asset, investment, or company, based on fundamentals, independent of market value.

Required Return

The minimum expected return an investor demands for investing in a particular asset, factoring in its risk.

Discount Rate

The discount rate applied in the calculation of the present value of future cash flows in a DCF analysis.

Constant Growth Rate

An assumption in certain financial models that estimates an investment's dividends or cash flows will grow at a steady, unending rate.