Primary Building Blocks in a Company's Organizational Structure Do NOT

question 19

Multiple Choice

Primary building blocks in a company's organizational structure do NOT include

• A)functional departments
• B)process and operations departments
• C)empowered employee departments
• D)divisional units performing major processing steps
• E)geographic organizational units

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return; used in financial analysis to assess the value of future income.

Capital Investment

The expenditure of funds by a firm to acquire physical assets, such as property, plant, or equipment, to improve its long-term income and profitability.

Net Present Value Method

A method of analysis of proposed capital investments that subtracts the amount to be invested from the present value of the cash flows expected from the investments.

Cash Payback Method

A capital budgeting technique that calculates the time required to recoup the cost of an investment based on its expected cash flows.