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:

Coherent Strategy

A strategic approach that is logical, consistent, and connected in a way that all parts support each other towards achieving business goals.

Operational Focus

Concentration on the day-to-day tasks and management of business operations to optimize efficiency and meet short-term objectives.

Strategic Focus

Concentrating organization's efforts and resources on a specific strategic direction to achieve competitive advantage or goals.

Strategic Posture

An organization's stance or approach in planning and decision-making processes to shape its long-term direction and the way it interacts with its environment.