Which of the Following Statements Is False

question 38

Multiple Choice

Which of the following statements is false?

• A) The profitability index measures the value created in terms of NPV per unit of resource consumed.
• B) The profitability index is the ratio of value created to resources consumed.
• C) The profitability index can be easily adapted for determining the correct investment decisions when multiple resource constraints exist.
• D) The profitability index measures the "bang for your buck."

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Definitions:

Multidomestic Strategy

A corporate strategy that involves producing products or services tailored to individual local markets.

Tailor

To adapt or modify something to suit a particular need or preference.

Needs and Preferences

The desires and choices of individuals or groups that drive their decisions and behaviors.

Transnational Strategy

An approach used by businesses that involves balancing global efficiencies with local responsiveness in their operations across various countries.