The 'Free Rider Tendency' Explains Which of the Following

question 51

Multiple Choice

The 'free rider tendency' explains which of the following?

• A)why group productivity grows in a linear fashion
• B)why groups will tend to let an unproductive outsider in the group
• C)why there is always one person who does not work as hard as other group members
• D)why the productivity of groups is exponential
• E)why individuals tend to expend less effort when they are working collectively than when they are working individually

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Definitions:

CCA Rate

Refers to the Capital Cost Allowance rate, which is used in taxation to represent the annual depreciation expense of a physical asset's cost.

NPV

Net Present Value, a financial metric that calculates the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Salvage Value

The estimated resale value of an asset at the end of its useful life, accounting for depreciation.

Discount Rate

In discounted cash flow analysis, this is the rate used to ascertain the present worth of cash flows expected in the future.