When Middles Look Across an Organization to Ensure That Project

question 21

Multiple Choice

When middles look across an organization to ensure that project priorities reflect the needs of the entire business,what is their main concern?

• A) that their proprietary BI methods are protected from industrial espionage
• B) that additional information available through an enterprise data warehouse should assist in decision making
• C) that a project does not just serve to sub-optimize one area over others
• D) that return on investment (ROI) and total cost of ownership justify the cost-benefit ratio

---

Definitions:

Cost of Equity Capital

The return required by equity investors as compensation for their investment risk.

WACC

Weighted Average Cost of Capital, a measure of the average rate of return a company is expected to pay its securities holders to finance its assets.

Debt Financing

The practice of borrowing funds to finance the business operations or expansion, typically involving loans or issued bonds.

Cost of Equity

The return a firm theoretically pays to its equity investors, i.e., shareholders, to compensate them for the risk they undertake by investing their capital.