The Assumption That Is Necessary for a Linear Programming Model

question 12

Multiple Choice

The assumption that is necessary for a linear programming model to be appropriate and that ensures that the value of the objective function and the total resources used can be found by summing the objective function contribution and the resources used for all decision variables is known as

• A)proportionality.
• B)negativity.
• C)additivity.
• D)divisibility.

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Definitions:

Free Cash Flow

The sum of money a business produces after deducting the capital expenses required to sustain or grow its assets.

Value Of Equity

The total value of a company's shares of stock held by all its shareholders, including share capital plus retained earnings.

Notes Payable

Short-term or long-term liabilities recorded when a company borrows money, often in the form of a promissory note.

Common Stock

Common stock represents units of ownership in a corporation, granting shareholders voting rights and potentially dividends, but also placing them last in priority for company assets upon liquidation.