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:

Duress

A condition where an individual performs an act as a result of violence, threat, or other pressure against the person, which may render a contract voidable.

Scienter

Knowledge of wrongdoing or fraudulent intent, particularly in the context of securities law, where it refers to a party's knowledge of false or misleading statements.

Rescind

The act of revoking, canceling, or repealing a contract, returning all parties to their state prior to the agreement.

Compensatory Damages

Financial awards given to a plaintiff to compensate for actual losses or harm suffered.