Uptown Promotions Has Three Divisions

question 57

Multiple Choice

Uptown Promotions has three divisions.As part of the planning process,the CFO requested that each division submit its capital budgeting proposals for next year.These proposals represent positive net present value projects that fall within the long-range plans of the firm.The requests from the divisions are $4.2 million,$3.1 million,and $6.8 million,respectively.For the firm as a whole,the management of Uptown Promotions has limited spending to $10 million for new projects next year.This is an example of:

• A)scenario analysis.
• B)sensitivity analysis.
• C)determining operating leverage.
• D)soft rationing.
• E)hard rationing.

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Definitions:

Psychological Empowerment

The feeling of increased self-efficacy among employees through recognition of their role and influence in the success of the organization, enhancing their motivation and commitment.

Meaningfulness

The sense or perception that one's work and efforts are worthwhile and important, contributing to a greater purpose or goal.

Self-concepts

The collection of beliefs, attitudes, and perceptions that an individual holds about themselves, shaping their identity and behavior.

Job Enrichment

A method of motivating employees by providing them with opportunities for growth, achievement, and responsibility in their jobs.