The Cost Effectiveness Ratio for the Current Level of the Activity

question 21

Multiple Choice

The cost effectiveness ratio for the current level of the activity below is


$\begin{array}{|l|c|c|}\hline & \text { Total Avoided Infections } & \text { Total Cost } \\\hline \text { Minimal } & 1,00025 \% & \$ 20,00020 \% 1.25 \\\hline \text { Reduced } & 2,00050 \%+25 \% & \$ 45,00045 \%+25 \% 1.00 \\\hline \text { Current } & 4,000100 \%+50 \% & \$ 100,000100 \%+55 \% 0.91 \\\hline \text { Expanded } & 8,000200 \%+100 \% & \$ 250,000250 \%+150 \% 0.67 \\\hline\end{array}$

• A) 1.25
• B) 1.00
• C) 0.91
• D) 0.67
• E) 0.40

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Definitions:

Corporate Governance

The framework of rules, practices, and processes by which a company is directed and controlled, often focusing on the interests of shareholders, management, customers, suppliers, financiers, government, and the community.

Financialization

A trend in which financial services, such as investment, become a more dominant sector in the national economy, influencing societal and economic structure.

Value Maximization

Refers to strategies aimed at increasing the overall value and performance of a company, maximizing shareholder wealth.

Capital Investment

Funds spent by a business to acquire or upgrade physical assets such as property, industrial buildings or equipment.