Small Businesses Probably Make Less Use of the DCF Capital

question 25

True/False

Small businesses probably make less use of the DCF capital budgeting techniques than large businesses. This may reflect a lack of knowledge on the part of small firms' managers, but it may also reflect a rational conclusion that the costs of using DCF analysis outweigh the benefits of these methods for those firms.

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Definitions:

Role Confusion

A situation where an individual is unsure about their place in society or their personal identity, often occurring during adolescence.

Basic Trust

A term introduced by Erik Erikson referring to the first stage of psychological development where an infant develops a sense of trust or mistrust largely depending on the quality of caregiving.

Autonomy

The capacity to make an informed, uncoerced decision; often related to the ability of individuals to govern themselves.

Competence

The quality or state of having sufficient knowledge, judgment, skill, or strength for a particular task.