An Organization Must Identify What It Wants to Do and How

question 68

Multiple Choice

An organization must identify what it wants to do and how it is going to do it.What does the "how" part of this question focus on?

• A)Justification of the project
• B)Definition of the project
• C)Analysis of project risks
• D)Expected results of the project

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Definitions:

Expected Return

A synonym for Expected Rate of Return, signifying the profit or loss investors anticipate from an investment, commonly shown as a percentage.

Required Return

The minimum expected return an investor demands for a specific investment, considering the risk associated with it.

Dividend Yield

A financial ratio that indicates how much a company pays out in dividends each year relative to its share price.

Capital Gains Yield

Capital gains yield refers to the price appreciation component of a stock's total return, calculated as the change in stock price divided by the original price.