The Two Cardinal Rules Which Financial Analysts Follow to Avoid

question 8

True/False

The two cardinal rules which financial analysts follow to avoid capital budgeting errors are: (1) capital budgeting decisions must be based on accounting income, and (2) only incremental cash flows are relevant to accept/reject decisions.

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Definitions:

Feedback

The process of providing constructive information regarding someone's performance or behavior to encourage improvement or reinforce positive actions.

Compressed Workweeks

Work schedules that allow employees to complete their usual work hours in fewer days, often involving longer individual work days.

Social Aspects

The dimensions of an issue, activity, or situation that involve the interactions and relationships between individuals or groups.

Required Number of Hours

The specific number of hours employees are mandated to work within a certain period, as stipulated by their employment contract or company policy.