One of the Approaches That Can Be Used in Making

question 50

Multiple Choice

One of the approaches that can be used in making the decision to expand that involves creating a model of possible decisions and the short and longer term consequences of each decision is the:

• A)operational decision model.
• B)decision tree method.
• C)truth table approach.
• D)mathematical modeling approach.

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Definitions:

Required Return

The minimum profit or yield that an investor expects to receive on an investment, considering the risk involved.

Stock Purchase

The act of acquiring ownership shares in a company, representing a claim on part of its assets and earnings.

Required Return

The minimum expected return an investor demands for an investment, considering its risk and the returns available from other investments.

Dividends

Dividends are payments made by a corporation to its shareholders, usually as a distribution of profits, providing an income stream to investors.