Managers Need an External Locus of Control Because They Are

question 72

True/False

Managers need an external locus of control because they are responsible for what happens in organizations.

Appreciate the significance of incorporating risk into capital budgeting decisions.

Understand the concept and value of real options in capital budgeting.

Realize the impact of flexibility and abandonment options on project valuation.

Distinguish between different scenarios (best case, worst case, and most likely) in project evaluation.

---

Definitions:

Action Potential

A brief change in the electrical charge of a neuronal membrane; the physical basis of the signal that travels the length of the neuron.

Excitation Threshold

The voltage difference between a neuron’s interior and exterior that, if exceeded, causes the neuron to fire.

Action Potential

A temporary reversal of electric polarization of the membrane of a nerve cell or muscle cell, involved in the transmission of signals.

Nodes of Ranvier

Gaps in the myelin sheath of nerve fibers that facilitate the rapid conduction of electrical impulses along the neuron.