The Senior Managers of Optimum Inc

question 15

Multiple Choice

The senior managers of Optimum Inc.,a multinational information technology firm,were concerned that people were not buying their computers.They were shocked to hear of a salesperson recommending to customers to buy something other than an Optimum PC because they were of poor value.This small incident motivated the organization to conduct an extensive survey to understand real customer experience in order improve their products accordingly.This was an example of

• A) a normative process.
• B) evidence-based decision making.
• C) satisficing.
• D) a nonrational process.
• E) escalation of commitment.

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Definitions:

WACC

Weighted Average Cost of Capital; a measure of a firm's cost of capital where each category of capital is proportionately weighted.

Capital

Refers to financial assets or their financial value, as well as the tangible factors of production that are used to create other goods and services.

After-Tax Cost

The actual cost of an expense or investment after taking into account the effects of taxes.

Debt

An amount of money borrowed by one party from another, under the condition that it is to be paid back at a later date, usually with interest.