Which of the Following Is Correct About the Payback Method

question 28

Multiple Choice

Which of the following is correct about the payback method?

• A) It considers only the cash flows that occur during the payback period.
• B) It considers an asset's profitability.
• C) It is normally the only method used when deciding whether to invest in an asset.
• D) It is difficult to calculate.

---

Definitions:

Internal Uncertainty

Uncertainty that originates within an organization due to factors like unclear objectives, lack of managerial direction, or unpredictable environments.

Classical Organization

A theory or model of management that focuses on efficiency, hierarchy, and strict roles within an organization to achieve its goals.

Intrinsic Rewards

Non-monetary rewards that come from the satisfaction of doing a job, such as personal achievement or professional growth.

Joint Employee-management Planning

A collaborative approach between employers and employees in the planning and implementation of workplace strategies.