If the Accounting Rate of Return Exceeds the Required Accounting

question 152

Multiple Choice

If the accounting rate of return exceeds the required accounting rate of return,

• A)invest in the capital asset.
• B)do not invest in the capital asset.
• C)only invest if the payback period is also greater than the required rate of return.
• D)only invest if the payback period is also less than the required rate of return.

Understand the implications of environmental uncertainty on organizational strategy and operations.

Recognize the significance of stakeholders in the task and specific environments of organizations.

Define the task and general environments and their relevance to managerial decision-making.

Understand methods through which organizations can achieve a competitive advantage.

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Definitions:

Economic Contraction

A slowdown of the economy characterized by a decline in spending and during which businesses cut back on production and lay off workers.