What Is the Major Limitation of Using the Payback Period

question 4

Multiple Choice

What is the major limitation of using the payback period as a tool in capital budgeting?

• A) It is difficult to calculate without a computer.
• B) It favors large investments.
• C) It ignores the time value of money.
• D) It does not consider cash flows.

Summarize the main findings from Richard Walton's study, including factors contributing to the lack of diffusion.

Identify organizational characteristics that make diffusion especially difficult.

Comprehend the difficulty managers face in translating knowledge into action.

Explain the "knowing-doing gap," including its causes.

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Definitions:

Physical Health

The overall condition of a person's body, including freedom from illness or injury and the ability to perform daily tasks without physical limitation.

Eysenck's Factors

A personality model proposing three dimensions of human personality: extraversion-introversion, neuroticism-stability, and psychoticism-superego.

Psychoticism

A personality pattern typified by aggressiveness and interpersonal hostility, related to the liability to have psychotic thinking or experiences.

Agreeableness

A personality trait characterized by attributes such as trust, altruism, kindness, affection, and other prosocial behaviors.