Frank Company, Which Has Total Assets of $300,000, Has an Opportunity

question 137

Multiple Choice

Frank Company, which has total assets of $300,000, has an opportunity to invest $80,000 in a new project that will generate a return of $16,000 per year. Given this information, if Frank Company's acceptable return on investment is 22%, it will probably:

• A) Accept the project, but also look for another project
• B) Reject the project
• C) Increase its return on investment by accepting the project
• D) Not be able to make a decision based on the given information

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Definitions:

Sociobiology

A field of study that examines social behavior from a biological perspective, focusing on how behavior has been shaped by evolutionary processes.

Evolutionary Theory

A scientific theory which posits that all species of organisms arise and develop through natural selection of small, inherited variations that increase the individual’s ability to compete, survive, and reproduce.

Social Learning Theorists

Scholars who study and explain how individuals learn social behaviors through observing others, imitating modeled behaviors, and being rewarded or punished.

Imitate Behaviours

The action of copying or mimicking the actions, speech, or mannerisms of others as a form of learning or social adaptation.