What Is O Ne of the Reasons Why Shareholder Value

question 21

Multiple Choice

What is o ne of the reasons why Shareholder Value Analysis (SVA) is based upon Net Present Value (NPV) Analysis?

• A) NPV considers expected return for level of risk in its calculation.
• B) NPV can be modified to accommodate changes in accounting procedures.
• C) NPV uses only actual, current, measurable data in its calculation.
• D) NPV is easy to calculate and to interpret and is widely used..
• E) NPV considers the size of the business in its calculation.

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Definitions:

Group Dynamics

The study of the behaviors and psychological processes occurring within a social group, or the effects the group has on individual behavior.

In-Groups

Social groups to which an individual feels they belong, where members often share similar interests or identities.

Out-Groups

Groups to which individuals do not belong and may feel opposition or hostility towards, in contrast to in-groups with which they identify.

Attribution Theory

A psychological theory that explains how individuals infer the causes of their own and others' behaviors and events.