Managers Who Are Evaluated Based on the Accounting Rate of Return

question 7

Multiple Choice

Managers who are evaluated based on the accounting rate of return model are reluctant to use ________ for capital budgeting decisions.

• A) payback period model
• B) real options model
• C) discounted cash flow models
• D) return on investment model

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Definitions:

Political Power

The ability or capacity of an individual or group to influence or control the actions, policies, or decisions of others, particularly in the context of governance.

Medicare Program

A federal health insurance program in the United States for people aged 65 and older, as well as for younger individuals with certain disabilities.

Insurance

A financial product that provides protection against the risk of financial losses, covering areas like health, property, and life.

Water Guns

Toy guns designed to shoot water with varying degrees of force, often used for recreation and play, especially in warm weather.