In Moving from the Measurement Model to the Structural Model

question 47

Multiple Choice

In moving from the measurement model to the structural model:

• A)The error terms are correlated with each other.
• B)The emphasis shifts from the relationships between latent constructs and measured variables to the nature and magnitude of the relationships between constructs.
• C)The exogenous constructs each become endogenous.
• D)The endogenous constructs become exogenous.
• E)None of the above

Understand the principles of calculating operating cash flows (OCF) and the tax-shield approach.

Comprehend the methods for evaluating projects, including Equivalent Annual Cost (EAC) and Net Present Value (NPV).

Analyze the financial impacts of cost-cutting proposals and the effects on sales and costs.

Identify relevant costs for project evaluation, including copier replacement considerations.