_____ Relationships Can Be Implemented by Creating a New Entity

question 38

Multiple Choice

_____ relationships can be implemented by creating a new entity in 1:M relationships with the original entities.

• A) 1:N
• B) M:1
• C) M:N
• D) 1:1

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Definitions:

Discount Rate

The interest rate used to discount future cash flows to their present value, enabling comparison of the value of investments made at different times.

Net Present Value

A method used to evaluate investments by calculating the present value of expected future cash flows minus the initial investment cost.

Cash Inflows

Refers to the money received by a company during a particular period, including revenues from sales, investments, and financing activities.

Minimum Acceptable Rate

The lowest rate of return on an investment that a manager or investor is willing to accept.