Creating Slack Resources Means That

question 28

Multiple Choice

Creating slack resources means that:

• A) a manager limits the availability of resources to some units.
• B) nonperforming employees are assigned to easier tasks.
• C) more resources are made available to each unit in case they need them in a pinch.
• D) each unit is differentiated by functional specialty.
• E) time,money,and other resources are tightly budgeted.

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Definitions:

Project's Liquidity

An assessment of a project's ability to convert its assets to cash quickly without significant loss in value, to meet short-term obligations.

WACC

Weighted Average Cost of Capital (WACC) is the average rate of return a company is expected to pay its security holders to finance its assets.

IRR

Internal Rate of Return; a financial metric used to estimate the profitability of potential investments.

NPVs

NPVs, or Net Present Values, is a financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time.