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:

Self-Disclosure

The process of disclosing one's own personal details to other people.

Reciprocity Norm

A social norm that entails individuals returning the kind of treatment they have received from others, promoting cooperative and altruistic behavior.

Diffusion of Responsibility

A phenomenon in social psychology where individuals feel less compelled to take action or assume responsibility in the presence of a large group of people.

Reciprocity Norm

A social norm that dictates that people should return the favor or kindness that has been done to them.