Most Managers Evaluate Decision Alternatives Based on How

question 90

Multiple Choice

Most managers evaluate decision alternatives based on how

• A)much the decision will increase or decrease organizational profits.
• B)the outcomes may affect selected performance measurement and reward criteria.
• C)much the outcome will reduce the organization's cost of capital.
• D)easily the decision impacts can be quantified in the organization's cost management system.

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Definitions:

Buy

The action of acquiring ownership in a financial asset with the expectation that its value will increase over time.

Futures Contract

A legal agreement to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.

Specified Amount

A clearly defined sum or quantity noted in a financial agreement or contract.

Predetermined Price

A specific price set in a contract or agreement, at which a particular transaction (such as buying or selling) will occur in the future.