Which of the Following Statements Is Correct

question 71

Multiple Choice

Which of the following statements is correct?

• A)Capital budgeting analysis is not a framework for evaluating all business decisions; it is only a tool for the "financial" types.
• B)Proper analysis will identify irrelevant cash flows and an appropriate discount rate to reflect the risk of the strategy and will compare the benefits and costs of the project without considering the time value of money.
• C)Whether the investment is one in a business strategy, building a new warehouse, seeking fuel efficient methods of doing business, upgrading information technology systems, or investing in human resources, we should not try to quantify the benefits and cost of these choices in order to evaluate them properly.
• D)To achieve success over time, a firm's managers must identify and invest in projects that provide positive net present values to maximize shareholder wealth.
• E)all of the above statements are correct

Understand the doctrines of ratification and adoption in the context of unauthorized contracts.

Explain the liability of agents for contracts entered into on behalf of non-existent or undisclosed principals.

Evaluate the responsibilities and obligations of principals and agents in hiring and supervising employees to prevent tortious acts.

Discuss the consequences of misrepresentation by agents in making contracts.

---

Definitions:

Might Makes Right

A principle suggesting that those who are powerful or have the ability to enforce their will can define what is considered morally right or acceptable.

Social Dominance Orientation

A personal attitude that places a value on hierarchies within societies, preferring inequality among social groups.

Social Equality

A state of affairs in which all individuals within a society have equal rights, opportunities, and treatment, regardless of personal traits or socioeconomic status.

Coercive Power

The ability of a person to influence others' behavior by punishing them or threatening to punish them if they do not comply with their directives.