With Setting SMART Goals, You Should Choose Only a Few

question 31

Multiple Choice

With setting SMART goals, you should choose only a few goals on which to focus. These goals should be results-oriented and

• A) support the company's diversity plan.
• B) align with the beliefs of the local community.
• C) keep employees happy.
• D) support the organization's vision.
• E) meet low-cost goals.

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Definitions:

WACC

Weighted Average Cost of Capital, a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.

Capital Budgeting

The process of evaluating and selecting long-term investments that are consistent with the firm's goal of wealth maximization.

After-Tax Cost

The net cost of a transaction or investment after the effects of taxes are considered, often used in analyzing the cost of financing options.

Specific Capital

This refers to the various types of capital (debt, equity, etc.) a company uses for financing its operations and investments, with each type having its own cost and characteristics.