A Financial Manager Who Does Not Follow the General Constraints

question 7

Multiple Choice

A financial manager who does not follow the general constraints of the NPV rule may:

• A) accept a negative project for fear of losing an investment opportunity.
• B) Accept a marginally acceptable NPV project limiting the corporation's ability to choose a competing project.
• C) Option the project to another firm.
• D) Not take a positive NPV project even if the NPV is adequate reward to forego the option.

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Definitions:

Leadership Style

Refers to the behaviors and methods leaders use to inspire, influence, and direct their teams towards achieving set objectives.

Task Demands

Aspects of a job that involve specific tasks, work content, and work environment requiring physical and mental effort by the employee.

Role Ambiguity

A situation in which the expectations associated with a role are unclear, leading to confusion and potentially stress for the individual in that role.

Physical Aspects

The tangible and environmental attributes or conditions of a workplace that can affect the well-being and performance of employees.