An Organization That Transforms Resources into an Intangible Output in Order

question 26

Multiple Choice

An organization that transforms resources into an intangible output in order to create time or place utility for its customers is known as _____ company.

• A) an outsourcing
• B) a service
• C) a manufacturing
• D) the International Organization for Standardization 9000
• E) total quality management

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Definitions:

Discount Factor

A multiplier used in financial calculations to determine the present value of future cash flows or payments.

Profitability Index

A financial metric comparing the present value of future cash flows generated by a project to its initial investment cost, used in capital budgeting.

Investment Projects

Initiatives undertaken by a business or organization to invest in assets or resources with the expectation of generating future profit.

Discount Rate

The interest rate used to discount future cash flows of a financial instrument to present value.