The Length of Time Required for an Investment to Generate

question 78

Multiple Choice

The length of time required for an investment to generate cash flows sufficient to recover the initial cost of the investment is called the:

• A)cash period.
• B)net working capital period.
• C)payback period.
• D)profitability index.
• E)discounted payback period.

---

Definitions:

Rent-Seeking Behavior

Rent-seeking behavior occurs when individuals or firms seek to increase their own wealth without contributing to productivity, often through political manipulation or monopolistic practices.

Government Policies

Actions and principles that a government follows or implements to achieve certain goals in the country's social, economic, and foreign affairs.

Extra Profit

Additional earnings that exceed the normal expected profit from business activities.

Rent-Seeking Behavior

Actions by individuals or firms aimed at manipulating the political or economic environment to acquire unearned income or profits.