Examples of External Shocks Are All of the Following EXCEPT

question 277

Multiple Choice

Examples of external shocks are all of the following EXCEPT

• A) war.
• B) drought.
• C) oil shock.
• D) U. S. federal tax policies.

Understand the concept and implications of forecasting risk in capital budgeting.

Comprehend internal rate of return (IRR) and its application in project evaluation.

Explain the importance of contingency planning in financial management.

Recognize the underestimation of true NPV in conventional capital budgeting.

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Definitions:

Lockouts

Actions taken by employers to prevent employees from working as a strategy in labor disputes, typically during negotiations for better terms or conditions.

Picketing

The act of standing or marching outside a place of work or another location as a form of protest, often by workers during a strike.

Preferred Shares

Shares giving the shareholder preference over other classes of shares; that preference often pertains to the payment of dividends.

Legal Obligation

A legal obligation is a requirement imposed by law, where a person is required to perform or refrain from performing a certain action.