The Amount of Information a Communication Medium Can Carry and the Extent

question 50

Multiple Choice

The amount of information a communication medium can carry and the extent to which the medium enables the sender and receiver to reach a common understanding is known as _____.

• A) nominal information
• B) information richness
• C) information inadequacy
• D) information overload
• E) information distortion

---

Definitions:

Capital Budgeting

The process by which a business evaluates and plans for significant investments in projects, properties, or equipment.

Expected Cash Flows

Forecasts of the amounts, timing, and uncertainty of cash receipts and disbursements that a business anticipates.

Annual Rate of Return Technique

A method to estimate the profitability of potential investments by calculating the projected annual rate of return.

Time Value of Money

The concept that money available now is worth more than the same amount in the future due to its potential earning capacity.