The Responsibility for Managing Day-To-Day Operations and Carrying Out Corporate

question 133

Multiple Choice

The responsibility for managing day-to-day operations and carrying out corporate policies belongs to the ________.

• A) board of directors
• B) chief executive officer
• C) stockholders
• D) creditors

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Definitions:

NPV

Net Present Value; a method used in capital budgeting to evaluate the profitability of an investment, calculating the difference between the present value of cash inflows and outflows.

Discounted Payback Period

The time it takes for an investment to generate cash flows to recover its initial cost, accounting for the time value of money.

Cash Inflows

The total amount of money being transferred into a business, project, or financial product, typically measured within a specific period.

Rate Of Return

A financial return or setback experienced in an investment over a fixed period, denoted as a percentage of the original investment value.