Why Is the Personal Decision a Financial Manager Makes as to Whether

question 36

Multiple Choice

Why is the personal decision a financial manager makes as to whether to buy or to rent an apartment as a personal residence most like the professional decision that a manager makes as to whether his/her firm should try to acquire a stake in a fast-growing new internet-based company?

• A)Both decisions involve the purchase of assets.
• B)Both decisions should be made based upon the trade-off between benefits and costs across time.
• C)Both decisions are vital to the financial health of the decision maker.
• D)Both decisions will be made based on what provides the greatest long-term benefit.

---

Definitions:

Crisis Situation

An unpredictable and high-stress condition that requires immediate attention and action to prevent or mitigate damage.

Organizational Misdeeds

Actions or behaviors by an organization that are unethical, immoral, or illegal.

Vulnerability

A state of being open to harm, damage, or attack due to susceptibility or lack of protection.

Persuasive Technique

Strategies used to convince or influence others to adopt a certain perspective, belief, or to undertake an action.