Key Components of Organization Design Contributing to Successful New Product

question 22

Multiple Choice

Key components of organization design contributing to successful new product innovation are:

• A) specialization, boundary spanning, and horizontal coordination.
• B) formalization, hierarchy, and organic structure.
• C) specialization, formalization, and standardization.
• D) dual-core processes, top management support, and incremental change.

Knowledge of evaluating investment decisions based on present value and discount rates.

Ability to calculate the net present value (NPV) of an investment.

Understand the importance of financing options and interest rates in making investment decisions.

Understand the structure and functions of the three branches of the federal government.

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Definitions:

Financing

The act of providing funds for business activities, making purchases, or investing.

Capital

Long-term assets or the money used to support long-term assets and projects. Long-term debt and equity on the balance sheet.

Profitability Index

A capital budgeting tool that measures the relationship between the present value of cash inflows and the initial investment, indicating the relative profitability of a project.

Cost of Capital

The rate of return a company must earn on its projects to maintain its market value and attract funding, often consisting of debt and equity costs.