Which of the Following Statements About Discount Rates Is False

question 57

Multiple Choice

Which of the following statements about discount rates is false?

• A) A discount rate for computing NPV cannot change from one period to the next.
• B) The discount rate for a risky investment should be higher than the discount rate for a risk-free investment.
• C) Discount rates can be applied either to the cash flow from a transaction or the taxable income from a transaction.
• D) Both a discount rate for computing NPV cannot change from one period to the next and discount rates can be applied either to the cash flow from a transaction or the taxable income from a transaction.

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Definitions:

Organic Model

A less formalized structure based on decentralization and cross-functional teams.

Organizational Structure

The system that outlines how certain activities are directed in order to achieve the goals of an organization, including roles and responsibilities.

Cross-Functional Teams

These are groups composed of members from different departments or areas of expertise, working together towards a common goal.

Chain Of Command

The flow of authority and power from the highest to the lowest levels of the organization.