The Payback Method of Capital Budgeting Approach to an Investment

question 59

Multiple Choice

The payback method of capital budgeting approach to an investment decision ________.

• A) considers cash flows over the life of the investment
• B) assumes that cash flows occur uniformly throughout the year
• C) considers time value of money
• D) ignores the initial investment

---

Definitions:

Country Club Manager

A leadership style characterized by high concern for people and low concern for production tasks.

Task Structure

The degree of clarity, or ambiguity, in the work activities assigned to the group.

Situational Favorableness

The extent to which a situation presents advantages or beneficial conditions to an individual or group.

Position Power

The authority associated with the leader’s formal position in the organization.