The ____ Are More Than a Poorly Developed Skill or Weakness

question 31

Multiple Choice

The ____ are more than a poorly developed skill or weakness in a key managerial area.

• A) killer constraints
• B) fatal flaws
• C) both of these
• D) neither of these

Identify the role of incremental cash flows in project evaluation.

Comprehend the need for preparing pro forma statements on a stand-alone basis for proposed projects.

Acknowledge the effect of fixed and variable costs on operating cash flow.

Grasp the concept of net working capital management and its recovery in project analysis.

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Definitions:

Economics

The study of how people use their scarce resources to satisfy their unlimited wants

Physical Capital

Manufactured items used to produce goods and services; includes new plants and new equipment.

Petty Cash

A small amount of cash on hand that is used for paying minor or incidental expenses in a business.

Free Goods

Items or services available in abundance without direct cost, such as air or sunlight, not requiring scarce resources for their production.