The Finding from Surveys of the Methods of Business Investments

question 66

Multiple Choice

The finding from surveys of the methods of business investments that is true is:

• A)businesses generally only use one method to assess each investment decision.
• B)there is a tendency for larger businesses to use the discounting methods.
• C)the payback method is hardly used in practice.
• D)All of the statements are true.

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Definitions:

Profit

The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Commodity

A basic asset deployed in commercial transactions that is exchangeable with other assets of the same classification.

Maximise

To maximize something to its utmost potential or level.

Input

The resources such as labor, materials, and capital used in the production process to produce output.