Which of the Following Appears to Be a More Likely

question 93

Multiple Choice

Which of the following appears to be a more likely result from using sensitivity analysis?

• A)agreement on the appropriate discount rate.
• B)determine whether to finance with debt or equity.
• C)isolation of pivotal factor in project profitability.
• D)select the best capital budgeting project.

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Definitions:

Control Process

The control process is an essential part of management that involves monitoring performance, comparing it with goals, and taking corrective action as needed.

Performance Objectives

Specific goals that individuals or teams strive to achieve, often set to measure and improve effectiveness and efficiency.

Corrective Action

Measures taken to rectify a problem, defect, or deficiency in a process or a product to ensure that it meets its specifications and requirements.

Relative Approach

A method of evaluation or judgment that is based on comparisons with other entities, situations, or standards, rather than absolute measures.