Match Each Definition That Follows with the Term (A-F) It

question 185

Multiple Choice

Match each definition that follows with the term (a-f) it defines.
-The process by which management allocates funds among various capital investment proposals

• A)Capital rationing
• B)Annuity
• C)Capital investment analysis
• D)Internal rate of return method
• E)Payback period
• F)Accounting rate of return

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Definitions:

Corporations

Legal entities that are separate from their owners, with the right to own property, enter contracts, and engage in business.

Proprietorships

Businesses that are owned and operated by a single individual, with no legal distinction between the owner and the business entity.

Opportunity Cost

The value of the best alternative that is forgone when a decision is made to pursue a particular course of action.

Expected Profit Rate

The forecasted return on an investment, calculated based on potential outcomes and their probabilities.