Replacing an Old Machine Will Increase Operating Income in the Long

question 199

True/False

Replacing an old machine will increase operating income in the long run, but NOT for this year. A manager may choose not to replace the machine if performance evaluations are based on performance over a single year.

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Definitions:

Model Business Corporation Act

A model set of laws prepared by legal experts to guide states in the development of their corporate statutes.

Shares

Units of ownership in a corporation or financial asset that represent an equal proportion of its capital.

Benefit

An advantage, profit, or gain received or enjoyed by an individual or entity, often as a result of a contract, employment, or other agreement.

Promoter

An individual or company who takes initiative to organize, finance, or promote and start up a new business venture or event.