Which of the Following Is Not a Characteristic of Well-Constructed

question 62

Multiple Choice

Which of the following is not a characteristic of well-constructed goals?

• A) They provide a means by which the performance of managers can be evaluated.
• B) They are lengthy and wordy.
• C) They specify a time period.
• D) They are challenging but realistic.
• E) They address critical issues.

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Definitions:

Required Return

The minimum expected return on an investment needed by an investor, factoring in the risk associated with the investment.

Initial Cash Outflow

Initial cash outflow refers to the amount of money a business or investor must spend upfront to initiate a project, investment, or acquisition.

Cash Inflows

The total amount of money being transferred into a business, typically from operational, investment, and financing activities.

Profitability Index

A calculation used to determine the relative profitability of an investment, defined as the present value of future cash flows divided by the initial investment cost.