When a Company Is Cash Poor, a Project with a Short

question 317

True/False

When a company is cash poor, a project with a short payback period but a low rate of return may be preferred to a project with a long payback period and a high rate of return.

---

Definitions:

Bureaucratic Organization

A structured approach to administration and management, characterized by formal procedures, hierarchy, and a clear division of labor.

Productive

Being productive means achieving or producing a significant amount or result, maximizing output from given inputs or efforts.

Quantitative Management

An approach to management that focuses on mathematical models, statistics, and numerical techniques to solve organizational problems.

Mathematical Techniques

A collection of methods and practices used in solving mathematical problems, including algebraic formulas, calculus, and statistical models.