Use the Table for the Question(s)below

question 1

Multiple Choice

Use the table for the question(s) below.
Consider the following two projects:
-Assume that projects A and B are mutually exclusive.The correct investment decision and the best rational for that decision is to:

• A)invest in project A since NPV_B < NPV_A.
• B)invest in project B since IRR_B > IRR_A.
• C)invest in project B since NPV_B > NPV_A.
• D)invest in project A since NPV_A > 0.

Distinguish between formal and informal elements within organizations.

Describe the roles of different sectors of the economy and their relationship with organizations.

Identify customer-driven management philosophies and their impact on organizational competitiveness.

Understand the concept of organizational culture and its significance.

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Definitions:

One-Line Consolidation

A method of including a subsidiary's information in a parent company's financial statements by a single line representing the investment's net value.

Consolidation

The process of combining the financial statements of a parent company with those of its subsidiaries to present the accounts as if the group of companies was a single entity.

Cost Method

An accounting technique used to record investments at their original purchase cost, adjusting for dividends received and not for changes in market value.

Equity Method

An accounting method for recording investments in which the investor recognizes income from the investee in proportion to its share of the investee’s profit or loss.