Which of the Following Is NOT a Good Reason to Use

question 102

Multiple Choice

Which of the following is NOT a good reason to use divisional costs of capital?

• A)Divisional costs of capital require less time and effort to estimate than individual project costs of capital.
• B)Divisional costs of capital reduce the latitude of divisional managers in deciding which projects to accept.
• C)Divisional costs of capital reflect differences in the systematic risk of projects evaluated by different divisions.
• D)Divisional costs of capital may be estimated by comparing divisions to the most similar free standing companies which may have different capital structures.

---

Definitions:

B.F. Skinner

An American psychologist and behaviorist who developed the theory of operant conditioning, regarding how behavioral responses can be reinforced by rewards or discouraged by punishments.

Stimulus Situation

An event or environment that evokes a response from an organism or individual.

Psychosexual Conflicts

A term from Freudian psychology referring to tensions and unresolved feelings that arise from different stages of sexual development.

Self-Actualization

The realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone.