A Consequence for a Company That Uses a Single Discount

question 41

Multiple Choice

A consequence for a company that uses a single discount rate to evaluate projects is that:

• A)high systematic risk divisions will find it hard to have their projects accepted.
• B)low systematic risk divisions will find it easy to have their projects accepted.
• C)high systematic risk divisions are likely to stagnate and even close down.
• D)the systematic risk of the company will drift upward over time.

Identify the benefits associated with ethical behavior and corporate social responsibility.

Understand the challenges and implications of unethical behavior in organizations.

Recognize the role of ethical leadership and the influence of supervisors on ethical culture.

Identify the impact of cultural diversity on ethical practices in the workplace.

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Definitions:

Divisional Segment Margin

The profit or loss generated by a specific division or segment of a business, excluding costs not directly tied to that division.

Common Fixed Expenses

Costs that do not vary with the level of production or sales, shared across different segments or products of a business.

Break-Even

The point at which total costs equal total revenues, meaning there is no profit or loss.

Sales Dollars

The total revenue generated from the sale of goods and services within a specific period.