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

question 20

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 manager makes as to whether her firm should try to acquire a stake in a fast growing new Internet-based company?

• A) Both decisions involve the purchase of assets that are essential for the existence of the investor.
• B) Both decisions involve the rental of a useful asset.
• C) Both decisions have the potential to affect the firm.
• D) Both decisions should be made based upon the tradeoff benefits and costs across time.

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Definitions:

Mental Retardation

An outdated term for intellectual disability, which is characterized by below-average intellectual functioning and a lack of skills necessary for daily living.

IQ Below 70

is often used as a diagnostic criterion for intellectual disability, indicating significant limitations in intellectual functioning and adaptive behavior.

Adaptive Functioning

Refers to an individual's ability to effectively manage everyday tasks and challenges, including social and practical skills.

Mildly Retarded

An outdated and insensitive term formerly used to describe individuals with mild intellectual disability.