Esteban,a Manager,performs a Financial Analysis of Several Investment Alternatives in Order

question 30

Multiple Choice

Esteban,a manager,performs a financial analysis of several investment alternatives in order to determine which alternative is most likely to impact the organization's profitability.Esteban is focusing on:

• A) bounded rationality.
• B) ethicalness.
• C) economic feasibility.
• D) dialectical inquiry.
• E) legality.

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Definitions:

Rational

A decision-making process that is based on making choices that result in the optimal level of benefit or utility for an individual.

Expected Additional Benefit

The anticipated extra advantage or income gained from making a particular business decision or investment.

Expected Additional Cost

The anticipated expenses that are not initially accounted for, occurring as a consequence of a new action or decision.

Expected Marginal Cost

The anticipated cost of producing one additional unit of a good or service, taking into account all relevant factors and future circumstances.