In Evaluating the Initial Investment for a Capital Budgeting Project

question 30

Multiple Choice

In evaluating the initial investment for a capital budgeting project, ________.

• A) an increase in net working capital is considered a cash inflow
• B) a decrease in net working capital is considered a cash outflow
• C) an increase in net working capital is considered a cash outflow
• D) net working capital does not have to be considered

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Definitions:

Divisional Structure

An organizational framework where operations are segmented based on products, services, or geographical markets.

Multidomestic Company

A firm that operates in several countries and tailors marketing strategies and product features to each, recognizing the diversity of international markets.

Knowledge Flows

The movement of information, skills, and expertise within and between organizations.

Matrix Structure

A matrix structure is an organizational configuration that combines two or more types of structures, typically combining functional and product departments in a grid-like fashion to manage complexity and foster cross-functional collaboration.