List Two Strengths and One Weakness of the Accounting Rate

question 143

Essay

List two strengths and one weakness of the accounting rate of return capital budgeting method.

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Definitions:

Tangible Property

Property that has physical substance and can be touched, such as land, buildings, or goods.

Bank Accounts

Financial accounts maintained by individuals or businesses in a banking institution for the purpose of managing money.

Takings Clause

A clause in the Fifth Amendment of the U.S. Constitution requiring that when government uses its power to take private property for public use, it must pay the owner just compensation, or fair market value, for the property.

Condemnation

The legal process by which government or a legal entity takes private property for public use, with compensation to the owner.