A Firm Should Make an Investment If the Expected Return

question 29

Multiple Choice

A firm should make an investment if the expected return is greater than

• A) the marginal cost of the investment.
• B) the fixed cost of the investment.
• C) the opportunity cost of the investment.
• D) the expected rate of inflation.

---

Definitions:

Single-use Plans

Strategic plans developed for a one-time project or event that are not intended to be repeated or reused.

Operational Plans

Detailed, short-term plans outlining how to achieve the strategic goals of an organization.

Mergers and Acquisitions

Business activities where companies are consolidated or purchased to expand operations or enter new markets.

Strategic Plans

Long-term action plans designed to position an organization for competitive advantage and successful achievement of its overall goals.