On What Should the Decision to Invest in a Project

question 37

Multiple Choice

On what should the decision to invest in a project be based?

• A)both financial and quantitative information.
• B)both non-financial and qualitative information.
• C)both financial and non-financial information.
• D)none of the above.

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Definitions:

Material Information

Information that could influence an investor’s decision to buy or sell securities, due to its significance.

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bonds), or rights to ownership as represented by an option.

Nonresident

An individual or entity that does not reside within a particular jurisdiction, often affecting tax and legal responsibilities.

Private Securities Litigation Reform Act

A 1995 U.S. federal law aimed at reducing frivolous securities litigation, mainly by imposing more stringent requirements on plaintiffs.