A Characteristic of Committee Decision Making Is That It Is

question 94

Multiple Choice

A characteristic of committee decision making is that it is:

• A) found in small businesses.
• B) done to please important family members.
• C) based on rank and hierarchy.
• D) rarely employed in Asian countries.
• E) by group or consensus.

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Definitions:

Discount Rate

A discount rate employed to ascertain the present worth of future cash flows within discounted cash flow analysis.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to analyze the profitability of an investment or project.

Operating Assets

Assets used in the day-to-day operations of a business, such as machinery, buildings, and equipment, that contribute to revenue generation.

Operating Costs

The expenses associated with the operation of a business, excluding costs associated with production.