A Senior Manager in an Organization Asks You to Describe

question 26

Multiple Choice

A senior manager in an organization asks you to describe the most important way for an organization to acquire or create new knowledge.How would you respond?

• A) brainstorming with internal and external partners
• B) scanning the environment by leveraging internal and external means
• C) benchmarking competitors for best practices and adopting them
• D) using scenario forecasting to develop plans to deal with internal changes

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Definitions:

Payback Period

Payback period is the duration required to recover the cost of an investment, calculated by dividing the initial investment by the annual cash inflow.

Net Present Value

A financial metric used to evaluate the profitability of an investment, calculated by subtracting the present value of cash outflows from the present value of cash inflows over a period of time.

Salvage Value

The determined residual amount of an asset at the cessation of its utility.

Net Cash Inflows

The total amount of cash received minus cash paid out over a specific period, not including non-cash expenses.