Which of the Following Could Be Considered a Form of Perpetuity

question 7

Multiple Choice

Which of the following could be considered a form of perpetuity?

• A)The college tuition payments that students make for four years.
• B)A 20-year corporate bond.
• C)A university scholarship endowment that promises to pay out $10,000 per year for an indefinite time period.
• D)A contract from the winning lottery ticket to receive cash flows for the next 30 years.

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Definitions:

Differentiation

The process of making a product or service stand out as unique or different from others in the market, often by focusing on unique qualities or features.

Structural Elaboration

The process of adding complexity and detail to an organization's structure to support its goals and activities.

Departmentalisation

Departmentalisation refers to the process of dividing an organization into distinct departments, allowing specialization according to function, product, market, or geographical location.

Effective Delegation

The process of assigning responsibility and authority to someone else to complete a task, while the delegator maintains ultimate responsibility for its success.