All of the Following Are Dangers of Revising Production Goals

question 89

Multiple Choice

All of the following are dangers of revising production goals downward EXCEPT ________.

• A)it destroys incentive to work harder
• B)it increases incentive to work harder
• C)it gives employees an excuse to be less productive
• D)it gives employees something to blame for their lack of effort

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Definitions:

Required Rate Of Return

The minimum expected rate of return on an investment, necessary to compensate for the risk undertaken, varying between investments.

Salvage Value

The projected remaining worth of an asset when it reaches the end of its operational lifespan.

Net Present Value

A method used in capital budgeting to calculate the value of an investment by discounting future cash flows back to their present value, to assess its profitability.

Discount Rate

The rate of interest that’s applied in discounted cash flow analysis to establish the present day value of cash flows expected later.