All of the Following Are Weaknesses of the Payback Period

question 39

Multiple Choice

All of the following are weaknesses of the payback period EXCEPT

• A) a disregard for cash flows after the payback period.
• B) only an implicit consideration of the timing of cash flows.
• C) the difficulty of specifying the appropriate payback period.
• D) it uses cash flows, not accounting profits.

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Definitions:

Rapid Change

The quick and often significant transformation in the environment, technology, society, or economy that requires prompt adaptation.

Organization Development (OD)

An area of study and application aimed at improving the ability and knowledge of individuals to facilitate better change and outcomes within organizations.

Planned Change Programs

Organized efforts and strategies implemented within an organization to improve processes, systems, or behaviors in pursuit of enhanced performance and efficiency.

Tempered Radical

An individual within an organization who seeks to initiate change by promoting ideas or actions that significantly differ from the norm, without alienating themselves from the organization.